annual report
0506 fulfilling the government’s the organisation vision for western australia The Public Transport Authority is responsible for the The Public Transport Authority (PTA) is required to following transport services in Western Australia: demonstrate in its annual report that it contributes to • rail, bus and ferry services in the metropolitan the State Government achieving its vision for Western area under the brand Transperth; Australia. The vision is set out in the 2003 document • public transport services in regional centres; Better Planning: Better Services which establishes • road coach and rail passenger services to regional strategic outcome goals under the five headings: areas under the brand Transwa; and 1. People and Communities • school buses. . The Economy In addition to these transport services, it is responsible 3. The Environment for designing and building transport infrastructure, 4. The Regions principally through its entity New MetroRail which 5. Governance is extending the Perth metropolitan rail network, In this report, the PTA fulfils this reporting obligation and for protecting the long-term viability of Western by identifying the relevant strategic outcomes and the Australia’s freight rail corridor and infrastructure. contribution the PTA has made to them in 2005/06 through: purpose • Operational reports which show the effectiveness To increase the use of public transport through the and efficiency of the PTA’s transport services provision of customer-focused, safe and cost-effective • A Better Planning: Better Services report passenger transport services. • Audited key performance indicator report • Audited financial report aim To make public transport an attractive and sustainable measuring effectiveness and choice for connecting people and places. efficiency values To make its contribution to the Government’s vision for Western Australia, the PTA has adopted two We: outcomes: • value and respect our customers, suppliers and 1. Accessible, reliable and safe public transport each other; system • are committed to safety; . Protection of the long-term functionality of the • encourage each other to reach our full potential; railway corridor and railway infrastructure • are honest and exhibit high levels of integrity, openness and ethical behaviour; The PTA’s indicators of success in achieving the first of • recognise and reward achievement, initiative and these outcomes are based on patronage, accessibility, innovation; reliability, customer satisfaction, safety and cost- • strive for continuous improvement in everything efficiency. we do; and Its indicators of success in achieving the second of • are environmentally responsible. these outcomes are based on quality management of the railway corridor and residual issues of the rail freight network, which was leased to private sector operators in 2000.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 fulfilling the government’s the organisation vision for western australia The Public Transport Authority is responsible for the The Public Transport Authority (PTA) is required to following transport services in Western Australia: demonstrate in its annual report that it contributes to • rail, bus and ferry services in the metropolitan the State Government achieving its vision for Western area under the brand Transperth; Australia. The vision is set out in the 2003 document • public transport services in regional centres; Better Planning: Better Services which establishes • road coach and rail passenger services to regional strategic outcome goals under the five headings: areas under the brand Transwa; and 1. People and Communities • school buses. . The Economy In addition to these transport services, it is responsible 3. The Environment for designing and building transport infrastructure, 4. The Regions principally through its entity New MetroRail which 5. Governance is extending the Perth metropolitan rail network, In this report, the PTA fulfils this reporting obligation and for protecting the long-term viability of Western by identifying the relevant strategic outcomes and the Australia’s freight rail corridor and infrastructure. contribution the PTA has made to them in 2005/06 through: purpose • Operational reports which show the effectiveness To increase the use of public transport through the and efficiency of the PTA’s transport services provision of customer-focused, safe and cost-effective • A Better Planning: Better Services report passenger transport services. • Audited key performance indicator report • Audited financial report aim To make public transport an attractive and sustainable measuring effectiveness and choice for connecting people and places. efficiency values To make its contribution to the Government’s vision for Western Australia, the PTA has adopted two We: outcomes: • value and respect our customers, suppliers and 1. Accessible, reliable and safe public transport each other; system • are committed to safety; . Protection of the long-term functionality of the • encourage each other to reach our full potential; railway corridor and railway infrastructure • are honest and exhibit high levels of integrity, openness and ethical behaviour; The PTA’s indicators of success in achieving the first of • recognise and reward achievement, initiative and these outcomes are based on patronage, accessibility, innovation; reliability, customer satisfaction, safety and cost- • strive for continuous improvement in everything efficiency. we do; and Its indicators of success in achieving the second of • are environmentally responsible. these outcomes are based on quality management of the railway corridor and residual issues of the rail freight network, which was leased to private sector operators in 2000.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 contents
Chief Executive Officer’s overview and highlights...... 2 To the Hon. Alannah MacTiernan MLA Organisational Structure...... 4 Minister for Planning and Infrastructure Transperth...... 5 In accordance with Section 66 of the Financial Regional Town Bus Services...... 21 Administration and Audit Act 1985, I submit for your School Bus Services...... 24 information and presentation to Parliament the Annual Report of the Public Transport Authority of Western Transwa...... 27 Australia for the year ended 30 June 2006. The report PTA People...... 33 has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985. The PTA Executive...... 36 Better Planning: Better Services...... 38 Compliance...... 52
Compliance Statements...... 55 Reece Waldock Explanation of Major Capital Chief Executive Officer Expenditure Variations...... 56 Electoral Act 1907 – Section 175ZE...... 58 Independent Audit Opinion...... 59 Certification of Key Performance Indicators...... 60 Audited Key Performance Indicators...... 62 Financial Statements...... 77 Financial Statements Index...... 78 Certification of Financial Statements...... 79 Notes to the Financial Statements...... 84 Contact Details...... IBC
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 chief executive officer’s summary
The 2005/06 financial year was The PTA began recruiting the train drivers, transit another period of extraordinary guards and other staff who will operate the system. growth in patronage for Perth’s Approximately 300 jobs will be created in this public transport system. process. New MetroRail focused 100 per cent on the Southern Suburbs Railway, following the completion To year’s end, customer numbers and commissioning of the Thornlie spur line in August were up 3.7 per cent across our last year. rail, bus and ferry services to more than 98 million boardings, adding The Government’s decision in 2001 that all new buses to last year’s 4.9 per cent growth. should be powered by compressed natural gas is also Undoubtedly a large proportion bearing dividends for Western Australia in our high of the increase, much of it in work-related trips, was fuel price environment. At the end of 2005/06, we a direct result of motorists being persuaded out of had increased the number of gas-powered buses to their cars by escalating fuel prices. 224 and were moving to bring a further 325 into the fleet over a five-year period. The shift to an abundant With no short-term relief in sight, I expect the steady local resource is helping protect the public transport migration to public transport to continue. Indeed, we system from rising fuel prices. may well be seeing a fundamental shift in transport patterns in a city where people rely too heavily on The new vehicles, built to Euro 4 environmental cars. It is well documented that public transport is a standards, also have a lower impact on our safer, more cost-effective and more environmentally environment. friendly means of transporting large numbers of The PTA is also making a substantial investment in people in big cities. new rollingstock. We have commissioned 90 new ‘B’ All the world’s great cities have efficient public series railcars, and just three more of the current transport systems and in those cities the individual order remained to be delivered at the end of the cost of transport is substantially lower. Local market financial year. The new railcars, costing approximately surveys are now telling us that people in Perth are $280 million, represent the latest technology and are waking up to the paradigm that public transport is both faster and more comfortable than existing units. not a cost but a benefit, and are demanding more They are earmarked for the Northern and Southern expenditure in this area. I am very pleased to say the Suburbs Railways where higher speeds are possible PTA has sufficient robustness built into its systems to because of greater distances between stations. cope with rising passenger numbers. Customer feedback about these railcars has been very positive. In the context of the petrol price escalation, the development of the Southern Suburbs Railway Our new smart card ticketing system called SmartRider, is particularly timely. With an expected 25,000 the first of its kind in Australia, was very well received passengers each day and with a fully integrated by some 7,000 users chosen to be our control group. bus service, this $1.6 billion project will be a key This exciting new automatic ticketing system allows contributor to sustainable growth in our city. During credit to be loaded onto a card and for passengers to the year, there was a $49.8 million increase in the pass through platform entry and exit gates, knowing project’s budget and the completion date was pushed the correct fare will be deducted automatically. back three months to July 2007, but I consider these SmartRider was steadily extended across all buses, to be relatively minor issues in what will stand as trains and ferries. To ensure the system will function at the biggest public infrastructure project undertaken maximum efficiency, the completion date was shifted in Western Australia. The project is proving to be a back to late 2006. catalyst for extraordinary growth in Mandurah and Safety is at the forefront of the PTA’s planning for the southern suburban corridor, underlining the value school students. Following the State Government’s of this substantial investment. announcement in late 2005 that seat belts would
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 be required on all government funded school buses, The coming year is very promising. The whole the PTA purchased 23 buses fitted with belts. These organisation will look forward to: complemented the 46 buses that had already been • completing the construction phase of the fitted out to the new requirements. Southern Suburbs Railway and major steps I am pleased to report that a frustrating series of towards commencement of operations; mechanical problems with the new Prospector train • rolling out the southern corridor bus network servicing the Goldfields came to an end. Our supplier, services to complement the new railway; United Rail Group, undertook a major upgrade and • starting the Rockingham City Centre Transit redesign. This immediately began to put our on-time System, similar to Perth’s Central Area Transit running figures back on track. Despite the problems, (CAT) service, integrating the new railway with Transwa’s customer satisfaction levels for rail services the city centre and the beach; remained stable at approximately 85 per cent. Notably, • implementing a new customer information system satisfaction with Transwa bus services was very strong on train stations and at train and bus interchanges at approximately 91 per cent. to improve information delivery to customers; • constructing new stations at Joondalup (servicing Another benefit was the introduction of a 50-cent Joondalup Arena) and Victoria Park, along with standard student fare across the PTA transport system, major station upgrades at Kelmscott and East representing a substantial saving to many families. Perth; and Overall, I have been delighted by a year of outstanding • completing, and bringing into full operation, progress in many key projects. Our across-the-board Transperth’s SmartRider ticketing system. satisfaction rating dipped slightly to 82.8 per cent during 2005/06, but this was largely the result of the New MetroRail works in the city, some timetable teething issues on the new Thornlie Line and laying of new sleepers on the Armadale Line. I consider this an acceptable short-term loss for a major longer-term gain. Reece Waldock Chief Executive Officer
Station construction at Bull Creek was well under way.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Manager, Corporate Communications
Service Agreement
General Manager, Transperth Train Operations Service Agreement
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 transperth
Transperth is the brand and operating name of the public transport system in metropolitan Perth operated by the PTA. It consists of a bus network, a suburban electric train system and a ferry service. Transperth bus and ferry services are provided under commercial contract arrangements, while Transperth train services are provided by Transperth Train Operations, an operating division within the Public Transport Authority. Passenger information is provided through information offices and a call centre. These services are provided by the firm Serco.
Statement of Objectives
The objectives and outcomes for Transperth for 2005/06 were:
Objective Outcome Begin operations on the new spur line to Thornlie. Train services began on the new line on 7 August 2005. Commence the installation of the Recording Installation of the RAPID system was completed and Passenger Information Dissemination System on three of the 48 ‘A’ series railcars. (RAPID) to the ‘A’ series railcars to improve passenger security and information. This new system incorporates the latest digital technology, increases the number of cameras installed in railcars, provides passenger information displays and enhances message announcements. Complete upgrading of Perth train station facilities Upgrading was completed. including the installation of new stairs to Platform 7 and new lifts to Platforms 2 and 7.
The new Thornlie Line and train station were opened.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 transperth
Objective Outcome Take delivery of new railcars which comprise part The PTA took delivery of 36 new railcars. of the new fleet of three-car sets. The three remaining cars in the order were delivered early in the following financial year. Complete upgrading of signage at train stations. Signage was upgraded at all train stations during the year. Continue implementation of the new train The new system was introduced throughout the rail control system. network. Launch the new SmartRider ticketing system to As a number of significant technical issues had to be replace the MultiRider on Transperth bus, train addressed, the testing period was extended and the and ferry services. SmartRider control group increased from the initial ,000 to 7,000 people. The new group included passengers from all the different Transperth fare groups. The full implementation of the SmartRider system is expected to occur in late 2006. Continue to pursue patronage growth, high Fare-paying boardings on the Transperth system customer satisfaction ratings and a high level increased by 4.6 per cent while total boardings of on-time running. rose 3.7 per cent. The increase in demand resulted in significant pressure on bus and train capacity and led to a decline in the overall level of satisfaction as shown by the Passenger Satisfaction Monitor. Bus services maintained a high level of on-time running through improved traffic management and adjusted timetables to deal with disruptions caused by road works associated with construction of the Southern Suburbs Railway. For train services, on-time running was affected by speed restrictions due to re-sleepering. (see the Audited Key Performance Indicators in this Annual Report for more information.) Continue to review bus services across the There was improved frequency on: metropolitan area, reallocating resources from • Peak period services to Clarkson Train Station, areas where services are poorly utilised to areas and between East Perth and Hamilton Hill. of greater demand. • Off-peak period services to Canning Vale and between Cannington and Midland. • Perth to Mandurah services. • Services to Settlers Hill, Curtin University and Hammond Park. A new service was introduced to Banksia Grove. A feeder bus service was introduced to the new Thornlie train station. Improved services were introduced to Ellenbrook utilising a new bus transfer point.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Objective Outcome Promote a network of high-frequency bus and Marketing and promotion continued to train routes along major transport corridors. encourage patronage on Transperth’s high-frequency bus and train services, with resultant good patronage growth.
Service Transperth: Service reliability by mode Proportion of services meeting Transperth: Passenger place kilometres on-time targets (million) 100% 8,000 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 96.4% 94.4% 92.9% 92.8% 92.8% 91.7% 91.5% 89.3% 75% 86.9% 6,000 6,387.9 5,843.9 5,537.7 5,647.3 5,523.7 50% 4,000
25% 2,000
0% 2001/02 2002/03 2003/04 2004/05 2005/06 0 2001/02 2002/03 2003/04 2004/05 2005/06 Bus Train Ferry
Transperth: Customer satisfaction overall
100%
86.9% 75% 85.3% 84.8% 85.6% 82.8%
50%
25%
0% 2001/02 2002/03 2003/04 2004/05 2005/06
Source: Transperth Passenger Satisfaction Monitor. (Note: The results shown are users’ responses to the following prompt in respect of each mode: “How satisfied are you with the Transperth bus/train/ferry system overall?” They have been calculated by weighting the responses for the transport modes according to their initial boardings.)
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 transperth
Passenger Safety Revenue/Expenditure
Transperth: Passenger safety Transperth: Expenditure (million) Proportion of respondents who generally felt $600 safe on-board during the day $514.2 100% $500 $415.8 99% 99% 99% 99% 100% 100% 100% 98% 98% 100% 98% 97% 96% 96% 95% $400 $346.5 75% $285.6 $291.6 $300 $303.3 $265.7 50% $200 $232.9 $207.4 $213.4
$100 25% $0 2001/02 2002/03 2003/04 2004/05 2005/06
0% Operating expenditure Total expenditure 2001/02 2002/03 2003/04 2004/05 2005/06 Significant expenditure variances are explained by Bus Train Ferry individual mode in the Audited Key Performance Note: Measures relating to customer perception of Indicators section of this Annual Report. safety at other times and at stations/interchanges are shown in sections dealing with individual modes. Transperth: Revenue (million) $120
Patronage $102.7 $100 Transperth: Patronage (million) $90.3 $83.1 $85.4 $78.3 120 $80 $86.1 $81.5 $76.2 $77.9 $72.0 100 $60 98.526 94.985 90.578 $40 80 86.069 88.121
60 $20 60.053 55.504 57.407 52.869 54.349 40 $0 2001/02 2002/03 2003/04 2004/05 2005/06
20 Fare revenue Total revenue
0 Service Information 2001/02 2002/03 2003/04 2004/05 2005/06 Total patronage on the Transperth system increased Fare-paying boardings Total boardings for the seventh year in succession. In 2005/06, total boardings* increased by 3.7 per cent to 98.526 million from 94.985 million the previous year, while initial boardings† increased by 4.4 per cent to 71.846 million from 68.820 million. Fare-paying boardings rose 4.6 per cent to 60.053 million from 57.407 million.
* Total boardings = fare-paying boardings, free travel on passes, free travel on Central Area Transit services in Perth, Fremantle and Joondalup, and free travel on services within the Perth Free Transit Zone, plus transfers between services. †Initial boardings = fare-paying boardings, free travel on passes, free travel on Central Area Transit services in Perth and Fremantle and free travel on services within the Perth Free Transit Zone.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Total capacity provided on the Transperth system expressed in terms of passenger place kilometres rose by 9.3 per cent to 6,387.9 million from 5,843.9 million the previous year. This was due to a significant increase in train passenger place kilometres with the increasing use of trains in three-car and six-car configurations rather than two-car and four-car configurations. On a per capita basis, public transport usage within the Perth metropolitan area increased from 46.9 initial boardings in 2004/05 to 48.3 in 2005/06. This increase of 3.0 per cent compares favourably with the estimated 1.4 per cent increase in the population of the metropolitan area (Perth Statistical Division). Service Coverage – Access to Track-laying along the 72km route of the Southern Transperth Services Suburbs Railway progressed rapidly. A key outcome which the PTA seeks to achieve is to provide an accessible, reliable and safe public Indicators. transport system. Buses: Transperth continued its long-term program One objective in regard to accessibility is to ensure of buying accessible buses for its fleet. As at 30 June that people with disabilities are able to use Transperth 2006, the number of accessible buses was 550 out of a services. During the year, Transperth continued its total of 1,058 buses compared with 481 out of a total work toward this objective. fleet of1 ,030 buses a year earlier. Accessible buses are operated whenever possible, so that in off-peak periods Trains: All Transperth trains are accessible by most buses on the road are accessible. During peak people with disabilities. Therefore, the key issue for periods, when service demand is high, both accessible train accessibility is whether the access to train and non-accessible buses are fully committed. For stations and the gap between train and platform these reasons, accessible buses accounted for over meet accessibility standards. Of the 59 stations on 60 per cent of service kilometres during 2005/06 the suburban train network at 30 June 2006, 21 compared with 54 per cent in 2004/05. stations provided independent access to people in wheelchairs, complying with the Disability Standards Transperth continued its program of upgrading for Accessible Public Transport and Guidelines under the accessibility at bus stations. During the year, Disability Discrimination Act, 1992. This compares accessibility improvements were completed at with 15 stations in 2004/05, 11 stations in 2003/04 Booragoon bus station, and work was in progress at and 8 stations in 2002/03. Of the remaining 38 Esplanade Busport and Karrinyup bus station. Also, stations, 25 provided partial access, while 12 stations work began on upgrading accessibility at the bus/rail provided only limited access. At these 38 stations, interchanges at Joondalup, Warwick, Whitfords, Stirling, people in wheelchairs can seek individual assistance Glendalough, Oats Street and Cannington to meet the from Transperth customer service staff to access the specifications ofDisability Standards for Accessible Public stations and trains. Transport Amendment 2004 (No. 1). During the year, several stations underwent minor Ferries: The bulk of Transperth’s ferry services are upgrades to improve accessibility for people with provided by the Shelley Taylor-Smith, an accessible disabilities, including platform modifications to remove vessel. The two jetties in operation during the year, the gap to meet the current standards for disability at Barrack Street in Perth and Mends Street in access, and the installation of Tactile Ground Surface South Perth, are both fully accessible. Work began
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 transperth
on upgrading accessibility at the Barrack Street Jetty underpasses, 25kv electrical traction power and two to meet the specifications of Disability Standards for electric power feeder stations. Accessible Public Transport Amendment 2004 (No. 1). After a thorough review of the progress, cost and Another equally important aspect of accessibility is timeframe of the project in April 2006, the State providing ready access to the system for the maximum Government approved an increase in the overall number of people in the Perth community. This budget from $1.563 billion to $1.613 billion and second aspect of accessibility is measured in terms announced that the time for commencement of train of the proportion of point street addresses (PSAs) services between Perth and Mandurah would be July within the Perth Public Transport Area (PPTA) which 2007. are less than 500 metres from a Transperth stop (bus, At the end of the year, construction of the Southern train or ferry) providing an acceptable level of service Suburbs Railway infrastructure was about 75 per cent (ALS). An ALS is defined as an hourly service during complete. the day with at least three trips (i.e. at 20-minute intervals) in the peak flow direction in the morning Expenditure on the whole New MetroRail project and/or afternoon peak. stood at $1.3 billion or 81 per cent of the overall budget. Total expenditure in 2005/06 was $484 During 2005/06, 74 per cent of PSAs were within 500 million. metres of an ALS stop compared with 71 per cent in 2004/05. This improved access to Transperth services A total of 90 of the 93 new ‘B’ series electric railcars in 2005/06 was due to an increase of 13.5 per cent in had been accepted into service at the end of the year. the number of PSAs within the PPTA (from 623,548 in Other major highlights of the New MetroRail project March 2005 to 707,455 in March 2006). during 2005/06: Passenger Satisfaction • The Auditor-General on August 31 2005 The Passenger Satisfaction Monitor 2006 showed released his report to Parliament on the that, on a system-wide basis, 82.8 per cent of survey management of the City Rail Project (the Perth respondents expressed satisfaction with the overall CBD portion of the Southern Suburbs Railway level of service compared with 85.6 per cent in 2005. project). The report found that the PTA was (See details of passenger satisfaction in the train, bus capably fulfilling its contract management role and ferry service performance reviews below.) by: New MetroRail o using suitably qualified and experienced people The New MetroRail project is the largest public transport undertaking in Western Australia. o maintaining sound systems and processes Armadale Line improvements and the new Thornlie Line were completed in August 2005. o vigilantly monitoring the contractor’s performance The Southern Suburbs Railway is the most significant component of the New MetroRail project and is now o carefully assessing the contractor’s in the final year of construction prior to commissioning payment claims and handover. o working cooperatively with the The Southern Suburbs Railway will comprise 72 contractor. kilometres of double track electric railway between • The final section of the new 660-metre Mount Perth and Mandurah. It will have 11 stations, 770 metres Henry freeway bridge spanning the Canning of twin tunnels under the Perth CBD, 18 bridges or River was completed in October 2005, and the
10 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 bridge was opened for traffic in January 2006. SmartRider Project and Ticketing The work involved widening and strengthening System the 30-year-old bridge to accommodate a rail A number of significant corridor and associated infrastructure, as well technical issues had to as current and projected traffic volumes. be addressed during the • Tunnelling for the City Project began in implementation phase of October 2005, the first of the twin tunnels the SmartRider project, being completed in June 2006. resulting in extending • Track laying for the Southern Suburbs Railway the period of testing by began in March 2006. a special “control group”. These issues were resolved • All Kwinana Freeway and bridge works were with the co-operation of completed in May 2006. the system supplier and • Overall public support of the Southern Suburbs it is expected that the Railway continued at a very high level of 84% SmartRider system will in an independent public opinion poll taken in be fully launched to all May 2006. patrons in late 2006. Gas Fuel The following significant milestones were achieved A significant change is occurring in the fuel used by the project during Thousands of passengers by the Transperth bus fleet as a result of the State 2005/06: began to use SmartRider. Government’s 2001 decision to require all new bus acquisitions to be powered by compressed natural gas • Installation of SmartRider equipment was (CNG) engines. At 30 June 2006, Transperth operated completed across the existing bus, rail and ferry 224 CNG buses in its total fleet of 1,058 buses. A network in September 2005. This allowed the further 325 new gas-powered buses are due to be initial 2,000-strong control group to start using delivered by 2011 under the existing contract with the SmartRider system the following month. The Daimler-Chrysler. group was later expanded to a total of 7,000 users to cover all Transperth fare groups. The CNG refuelling facility at the East Perth Central • A new student fare was introduced for primary Area Transit (CAT) depot came into operation and secondary school students at the start of in late 2005 following delivery of the new natural the fourth term in 2005. The fare was set at 50 gas powered CAT buses. The Southern River bus cents and is valid for unlimited travel up to three depot was connected to CNG during the year and hours Monday to Friday between the first and operations commenced in May 2006. Work was last day of the school year including during mid- proceeding at year’s end on the installation of CNG term holidays. The new fare is available only as a refuelling stations at a number of other depots which pre-paid ticket, currently as a MultiRider but soon are scheduled to start coming online from early to be replaced as the SmartRider. 2007. • In May 2006, as a result of a Government initiative to provide seniors with a dual-use card, the Transperth SmartRider and the Western Australian Seniors Card were combined to form one card. These new cards, which were distributed to about 200,000 Western Australian seniors, enables them to access concession fares
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 11 transperth
on public transport services and free travel on • Deploy a new group of customer service staff, public transport on Sundays, public holidays and Passenger Ticketing Assistants, to monitor during Seniors Week. SmartRider fare gates at major train stations. In the Future • Commence redevelopment of Transperth Train Operations’ Claisebrook depot. In the coming year(s), Transperth will: • Under the Building Better Train Stations program, construct a new special events station at • Commence recruitment of staff and com- Joondalup, and redevelop Kelmscott and East missioning of assets leading to commencement Perth Train Stations. of the Southern Suburbs Railway. • Continue implementation of the Recording and • With the start of Southern Suburbs Railway Passenger Information Dissemination System services, adjust the southern corridor bus (RAPID) in Transperth’s first-generation (‘A’ network to provide feeder services to the new series) railcars. bus/train interchanges on this line. • Pursue and promote a network of high-frequency • Progress the design and construction of bus routes along major transport corridors. infrastructure and vehicles to enable introduction • Rebuild/refurbish Mirrabooka bus station. of the Rockingham City Centre Transit System to • Upgrade bus stations to meet new accessibility coincide with the start of train services on the standards. Southern Suburbs Railway. • Complete construction and open the relocated • Purchase new ticket vending machines for Armadale bus station. train and ferry services. These state-of-the-art • Complete construction and open the new machines will feature touch-screens and have the Welshpool bus depot. capability to accept banknotes and debit cards. • Extend bus services into new and developing Initially, the new machines will be installed on areas, such as Butler, Jindalee, Ellenbrook, Ashby, the Southern Suburbs Railway for the purchase Tapping, Darch and Madeley. of cash tickets at the new stations. The current- • Continue a rolling program of bus service generation ticket vending machines at existing reviews across the Perth metropolitan region, re- stations and ferry jetties will be replaced by new allocating resources from areas where services machines at a later date. are poorly utilised to areas of greater demand. • Introduce a new Customer Information System • Continue involvement in planning for at train stations and bus/train interchanges to reconstruction and redevelopment of the improve the quality of information provided to Wellington Street Bus Station and the passengers, particularly train arrival times. Northbridge Link project.
12 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 review of performance
Trains 95 per cent of services to arrive within three Description of Services minutes of the scheduled Transperth Train Operations (TTO) Division of the time. In 2005/06, 86.9 per PTA operates an electrified suburban train system cent of services met the with more than 890 services on an average weekday on-time arrival target and in excess of 5,600 services weekly. compared with 94.4 in At 30 June 2006, the system covered 101.7 kilometres 2004/05. However, when of track with 59 stations on five lines, and a fleet of service reliability is based on arrival within five 186 railcars which can be coupled in configurations of Stage one of the minutes of the scheduled two, three, four or six car trains. Fremantle Station time, 95.4 per cent met facade resoration was The train network consists of the Joondalup Line the target in 2005/06 and completed. (33.2km), the Fremantle Line (19.0km), the Midland 98.3 per cent in 2004/05. Line (16.0km), the Armadale Line (30.5km) and the Thornlie Line (3.0km). The Urban Securities Initiative Project (USIP) was completed. It improves the safety of customers using The Year’s Developments the rail system through 622 closed circuit television An additional 36 railcars were added to the Transperth cameras, a Central Monitoring Room where video fleet. These railcars, together with the 54 acquired data from the cameras is collected, viewed and stored, in the previous year, are to be used mainly on the and emergency/information booths on stations. Southern Suburbs Railway. During the year, all 90 Engineering works on the Armadale Line at Victoria railcars in configurations of three and six railcar trains Park, Cannington, Thornlie and Gosnells allowed level were used on existing lines. crossings to be closed at Bishopsgate Street, Crawford With the extension of the train network and Street, Verna Street and Lake Road reducing the risk consequent increase in services, train service of level crossing incidents. kilometres increased by 13.6 per cent, from 7.167 The replacement of timber sleepers with concrete million in 2004/05 to 8.138 million in 2005/06. The use sleepers began on the Armadale Line. Approximately of three and six railcar trains during the year resulted 14km were completed and the remaining 16km are in passenger place kilometres recording an increase of scheduled to be completed by March 2007. 23.1 per cent, from 2,293.6 million to 2,823.3 million. A siding to accommodate six car trains was constructed Between January and December 2005, a new suburban at West Leederville to improve train movements and train control system was progressively introduced operational efficiency for special events at Subiaco Oval. throughout the existing PTA urban rail network. The system incorporates new trackside telemetry which, in the near future, will deliver automatic route setting, integrated timetable planning and monitoring, comprehensive performance reporting, and new customer information displays at the stations. The train control system monitors daily train movements to determine the actual on-time arrival rate. The service reliability target for Transperth train services is for A new train control system was introduced across the suburban rail network.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 13 review of performance
An upgrade of Cannington Station was carried out to Transperth trains: Patronage (million) make the station fully accessible. 40 The first stage of restoration of the historic Fremantle Station façade was completed. This work was 32
undertaken with the guidance of the Heritage Council 34.1 32.7 31.4 31.1 and will see the entire building restored in time for 31.0 the 125th anniversary of its opening and the opening 24 of the Fremantle Line in the second half of 2006. 21.0
16 20.0 18.8 18.8 Cost of the Service 18.8
The total cost of providing train services increased 8 by 37.9 per cent, due largely to the increase in capital charges. Total expenditure, which amounted to $190.2 0 million in 2004/05, rose to $262.3 million in 2005/06. 2001/02 2002/03 2003/04 2004/05 2005/06 Operating cost (which excludes capital charges) Fare-paying boardings Total boardings increased by 13.3 per cent from $93.9 million to Customer Satisfaction $106.9 million. Transperth trains: Customer satisfaction A significant proportion of debt servicing charges overall included in the total expenditure relates to the 100% Southern Suburbs Railway. Similarly, the operating cost 91.0% 92.0% 90.0% 92.0% included “ramp-up” expenditure on recruiting and 89.0% 75% training of train crews for the new railway. However, revenue was yet to be generated from this significant investment which will double Perth’s suburban rail 50% network.
Patronage 25% Patronage on Transperth train services recorded a substantial increase for the second year in succession. 0% Fare-paying boardings rose by 4.8 per cent from 2001/02 2002/03 2003/04 2004/05 2005/06 20.038 million in 2004/05 to 21.002 million in 2005/06. The Passenger Satisfaction Monitor 2006 showed Total boardings increased by 4.5 per cent from 32.652 that a significant proportion of users continued to million to 34.133 million. show high levels of satisfaction with the train system While train patronage recorded this significant overall although the proportion fell to 89 per cent increase, the expansion of services resulted in train from 92 per cent in 2005. The table below shows that service kilometres increasing at a higher rate, by 13.6 the main contributing factors in the slight downturn per cent. Consequently, between 2004/05 and 2005/06 were a significant reduction in the level of satisfaction on a per service kilometre basis, fare-paying boardings with punctuality of trains and perceived overcrowding on train services fell by 7.7 per cent from 2.796 to during peak times, in that order. Decreased punctuality 2.581, and total boardings fell by 7.9 per cent from was attributable to a program to lay new sleepers on 4.556 to 4.194. the Armadale Line and some teething issues in the timetabling of services on the new Thornlie Line, which also affected the Armadale Line.
14 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Service characteristic Satisfaction rating 004/05 2005/06 1. Punctuality of train service 92% 87% 2. Cost of the fare 68% 68% 3. Speed of the trip 92% 92% 4. Number of trains running during the day 83% 86% 5. Cleanliness on board 84% 85% 6. Operation of ticket vending machines 85% 85% 7. Availability of seats 77% 78% 8. Number of trains during peak times 86% 81%
Satisfaction ratings for key service characteristics The results for the past five years show that the of Transperth’s train services (other than passenger proportion of train passengers who felt generally safe safety) are shown above. on-board trains and at station/interchanges during the day has remained high. However, the proportion Passenger Safety of train users who generally felt safe on-board trains In the Passenger Satisfaction Monitor 2006, train at night continued to fall, from 79 per cent in 2004 users were asked: “How safe do you generally feel to 75 per cent in 2005 and 74 per cent in 2006. from personal interference or threat from other The proportion of respondents who generally felt passengers?” safe at station/interchanges at night-time improved marginally. The graph shows the proportion of respondents who “always or usually feel safe” at the specified times/ The PTA is committed to ensuring that passengers locations on the train network. feel safe on the train network at all times. At year’s end, a total of 191 Transit Guards were in service and Transperth trains: an additional 14 were in training. Passenger safety perceptions In addition, the centralised monitoring of digital closed 100% circuit TV coverage at all stations via a state-of-the-art 95% 98% 97% 96% 96% 96% 95% 95%
93% monitoring centre manned 24 hours a day continued 90% 75% during the year. 79% 75% 74% 74% 73%
63% A memorandum of understanding between the 62% 62% 62% 59% 50% PTA and the Western Australian Police remained in force during the year. This memorandum established protocols for the provision of policing services and 25% security arrangements on the suburban rail network aimed at reducing criminal and other anti-social 0% behaviour on the network and ensuring personal 2001/02 2002/03 2003/04 2004/05 2005/06 safety and security for the commuting public. On-board (daytime) On-board (night-time) At station/interchange (daytime) At station/interchange (night-time)
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 15 review of performance
Buses peak services between East Perth and Hamilton Description of Services Hill. • Improved service frequency on off-peak services Transperth bus services were operated by three to Canning Vale, between Cannington and contractors under 11 contracts in 2005/06: Midland. • Path Transit (Marmion-Wanneroo and Morley • Improved service frequency on the Perth to contracts, with the Joondalup Central Area Transit Mandurah service. contract forming part of the Morley contract). • Improved service frequency on services to • Swan Transit (Canning, Kalamunda, Midland, Settlers Hill, Curtin University, and Hammond Southern River, Claremont, and Belmont Park. contracts). • A new service to Banksia Grove. • Southern Coast Transit Working with the City of Joondalup and Edith Cowan (Rockingham, Fremantle- University, a new Central Area Transit (CAT) service Cockburn, and Perth Central was introduced at Joondalup. These partners share Area Transit contracts, with the cost of this new CAT route with the PTA. the Fremantle Central Area A bus lane at South Street in Leeming came into Transit contract forming part service to provide peak period priority at a key point of the Fremantle-Cockburn on this major east-west route. contract). The Claremont-Belmont A bus priority lane was created on Alexander Drive at contract, which was operated the Walcott Street intersection in North Perth. by Swan Transit Riverside, Transperth developed a network of conceptual feeder ceased on 10 December bus routes to support the Southern Suburbs Railway 2005. This contract was when it commences operations. Extensive community replaced by two separate consultation was undertaken regarding this new contracts for Claremont and network. Belmont from 11 December 2005, both awarded to Total service kilometres operated by the Transperth Swan Transit following a competitive tender process. bus network continued to increase. In 2005/06, the During 2005/06, the Transperth bus system covered network covered 49.146 million service kilometres, 323 standard routes and 436 school routes, and an increase of 1.2 per cent from the 48.582 million operated 9,432 standard services and 436 school service kilometres recorded in 2004/05, which was services on an average weekday. Accessible buses were itself an increase of 1.4 per cent compared with the always used on 38 of the standard routes. A service previous year. frequency of 20 minutes or better was provided all Total capacity provided by the bus network was day on most major corridors. marginally higher in 2005/06 at 3,559.8 million The Year’s Developments passenger place kilometres, an increase of 0.4 per cent compared with 3,545.3 million passenger The following major service improvements were place kilometres in 2004/05. The small increase in introduced during the year: 2005/06 occurred despite the increasing proportion • A feeder bus network in August 2005 to support of gas buses in the fleet which have a lower average the new Thornlie train station. passenger capacity compared with diesel buses. • A feeder service to a new bus transfer facility at However, this was offset by the increase in service Ellenbrook. kilometres resulting in greater overall capacity being • Improved service frequency on peak period provided. feeder services to Clarkson Train Station and on
16 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 The service reliability target for Transperth bus On a per service kilometre basis, fare-paying boardings services requires buses to arrive at or depart from a on bus services increased by 3.3 per cent from 0.762 terminus or timing point no later than four minutes in 2004/05 to 0.786 in 2005/06, and total boardings from the scheduled time. Performance is monitored increased by 2.1 per cent from 1.274 to 1.3. through regular audits at key locations. In 2005/06, despite the continuing disruption to traffic flow caused Transperth buses: Patronage (million) by road works associated with the construction 75 of the Southern Suburbs Railway, improved traffic management schemes and timetable adjustments 60 63.9 61.9
helped to ensure that 91.7 per cent of services met 59.0 56.3 the service reliability target. This result compared 45 54.5 with 91.5% in 2004/05. During the period 2001/02
to 2003/04, before the road works commenced, the 38.6 37.0 36.3 30 35.2 proportion of bus services meeting the reliability 33.7 target was close to 93 per cent. 15 Cost of the Service 0 The total cost of providing bus services was $225.0 2001/02 2002/03 2003/04 2004/05 2005/06 million in 2004/05, which increased to $251.2 million Fare-paying boardings Total boardings in 2005/06, an increase of 11.7 per cent due largely to the increase in operating costs. The operating cost (which excludes capital charges) recorded an increase Customer Satisfaction of 14.3 per cent, from $171.3 million in 2004/05 to The Passenger Satisfaction Monitor 2006 showed that $195.8 million in 2005/06 primarily driven by significant a relatively high proportion of users continued to be increases in the cost of fuel, labour and security. satisfied with the bus system overall. However, the Patronage proportion who expressed satisfaction fell from 82 per cent in 2005 to 80 per cent in 2006. Transperth’s bus services experienced patronage growth for the seventh year in succession. In 2005/06, Transperth buses: fare-paying boardings rose by 4.5 per cent from 37.0 Customer satisfaction overall million to 38.650 million and total boardings rose by 100% 3.3 per cent from 61.873 million to 63.891 million.
84.0% Between 1998/99 (the first full year when all bus 75% 82.0% 82.0% 82.0% 80.0% services were operated on contract) and 2005/06, bus patronage increased as follows: 50% • fare-paying boardings by 33.6 per cent from 28.929 million to 38.650 million, and
• total boardings by 43.1 per cent from 44.647 25% million to 63.891 million.
0% 2001/02 2002/03 2003/04 2004/05 2005/06
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 17 review of performance
Service characteristic Satisfaction rating 2004/05 2005/06 1. Punctuality of the bus 84% 79% 2. Number of buses on weekdays 68% 71% 3. Cost of the fare 75% 72% 4. Driver’s handling of the bus 91% 89% 5. Speed of trip 82% 85% 6. Driver’s manner 89% 89% 7. Cleanliness on board 91% 87% 8. Availability of seats * - 88% * Replaced “buses on weekends”.
The table above shows that the main contributing Transperth buses: Passenger safety factors to the adverse result were a significant level perceptions of dissatisfaction with punctuality of services and the 100% 99% 99% 99% 98% 98% 97% 95% 95% 95% cost of fares, in that order. 95% 86% 86% 85% 75% 84%
Satisfaction ratings for key service characteristics 78% 68%
of Transperth’s bus services (other than passenger 67% 66% 66% 65% safety) are shown above. 50%
Passenger Safety 25% In the Passenger Satisfaction Monitor 2006, bus users were asked: “How safe do you generally feel 0% from personal interference or threat from other 2001/02 2002/03 2003/04 2004/05 2005/06 passengers?” On-board (daytime) On-board (night-time) At station/interchange (daytime) At station/interchange (night-time) The graph shows the proportion of respondents who “always or usually feel safe” at the specified times/ Over recent years, Transperth has introduced the locations on the bus system. following measures to promote passenger safety on The results for the past five years show that almost the bus network: all bus passengers generally felt safe on-board buses • Two security officers deployed Thursday to and at station/interchanges during the day. The Saturday of each week at each major bus station proportion of respondents who generally felt safe at from 2 pm to last bus. night at stations/interchanges has remained relatively • Mobile patrols on each of the three major sectors stable. However, it is noteworthy that there has been – north, south and east. a significant decline, from 85 per cent to 78 per cent, • Centrally monitored closed circuit TV at all bus in the proportion of respondents who generally felt stations. safe on-board buses at night. • Closed circuit TV on new buses in the fleet.
18 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Ferry Services Customer Satisfaction Description of services The Passenger Satisfaction Monitor 2006 continued the trend of a very high proportion of passengers The Transperth ferry service is provided under consistently expressing satisfaction with Transperth’s contract by Captain Cook Cruises. ferry services overall. Two vessels operate between the City (Barrack Street) and South Perth (Mends Street) providing 80 Transperth ferries: Customer services on an average (summer) weekday. satisfaction overall 100% 97.0% Patronage 96.0% 95.0% 96.0% 96.0% Ferry patronage increased in 2005/06, reversing a 75% negative trend. Previously patronage had declined every year since 2000/01 from a peak of 469,000 fare-paying boardings and 558,000 total boardings. In 50% 2005/06, fare-paying boardings recorded an increase of 8.7 per cent from 369,000 in 2004/05 to 401,000 while total boardings rose by 9.1 per cent from 25% 460,000 to 502,000.
On a per kilometre basis, fare-paying boardings, which 0% had fallen to 10.209 in 2004/05, increased by 13.8 2001/02 2002/03 2003/04 2004/05 2005/06 per cent to 11.620. Total boardings were 14.547 per service kilometre in 2005/06, an increase of 14.3 per cent over 12.731 recorded in 2004/05.
Transperth ferries: Patronage (million) 0.600 0.502
0.450 0.499 0.477 0.465 0.460 0.406 0.384 0.401 0.372 0.300 0.369
0.150
0.00 2001/02 2002/03 2003/04 2004/05 2005/06 Fare-paying boardings Total boardings
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 19 review of performance
Satisfaction ratings for key service characteristics of Transperth’s ferry services (other than passenger safety) are shown below (in order of importance):
Service characteristic Satisfaction rating 2004/05 2005/06 1. Cleanliness on board 98% 99% 2. Cost of the fare 88% 90% 3. Shelter at jetty 70% 79% 4. Number of ferries during the day 90% 67% 5. Speed of trip 96% 98% 6. Punctuality of ferry 90% 92% 7. Understandability of timetables 66% 78% 8. Availability of seats on the ferry 99% 100%
Passenger Safety Transperth ferries: Passenger safety perceptions
In the Passenger Satisfaction Monitor 2006, ferry 100% users were asked: “How safe do you generally feel 99% 99% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 97% 92% from personal interference or threat from other 91% 86% passengers?” 75% 82% The graph shows the proportion of respondents who 50% “always or usually feel safe” at the specified times/ locations on the ferry. 25% The results for the past five years show that almost all ferry passengers generally felt safe on-board the 0% ferry during the day and at night. Similarly, while 2001/02 2002/03 2003/04 2004/05 2005/06 almost all users felt safe at the jetty during the day, the On-board (daytime) On-board (night-time) proportion of users who felt safe at the jetty at night At jetty (daytime) At jetty (night-time) has increased significantly over the past three years.
20 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 regional town bus services
Description of Services From 2005/06, annual results relating to regional bus operations are being reported separately for Regional Town Bus Services (RTBS) Branch resides intra-town and inter-town services, to improve within the Transperth, Regional and School Bus understanding of their performances. Services Division of the PTA. It is responsible for the management of public transport systems in regional RTBS is also responsible for the administration of a Western Australia, primarily involving bus services small number of regular passenger transport (RPT) within Western Australian regional towns (that is, services operating in the Perth metropolitan area in intra-town services) and a small number of contracted a complementary capacity to Transperth services. The inter-town services. performance of these services has been included in the RTBS figures for 2005/06. At 30 June 2006, there were 15 intra-town services operating in 14 major regional towns throughout the Statement of Objectives State and four inter-town services. In 2005/06, the objectives and outcomes of Regional Town Bus Services were:
Objective Outcome Continue with a programmed approach of Improved service levels were achieved in Port Hedland, reviewing regional bus services. Geraldton, Albany and on the school bus service in Esperance. The improvements in Esperance resulted in a significant increase in patronage. Find solutions for regional transport problems RTBS worked with the Shire of Busselton, Office of in consultation with the local communities. Crime Prevention and the WA Police to provide public transport options for government to consider for School Leavers’ Week activities in Busselton, scheduled for November 2006. Conduct field visits and audit contractors’ A standardised reporting format was introduced to performance. maintain passenger and occupational safety records. Service audits of contractors were carried out in Albany, Bunbury, Busselton, Carnarvon, Collie, Dunsborough, Esperance, Geraldton, Kalamunda and Port Hedland.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 21 regional town bus services
The Year’s Developments Cost of the Service
During the year, RTBS completed its program of Total expenditure on regional bus services amounted signing regional town bus operators to a formal 12- to $10.6 million in 2005/06, which represented an year contract with the PTA. increase of 5.4 per cent over expenditure of $10.1 million in 2004/05. Expenditure on intra-town At 30 June 2006, the regional bus fleet totalled 138 services rose from $9.6 million to $10.2 million, an vehicles compared with 134 at 30 June 2005. Of these, increase of 5.5 per cent, while the cost of inter-town 131 buses were used to provide intra-town services services increased by 3.4 per cent from $0.444 million and 7 vehicles were used to provide inter-town to $0.459 million. services. Regional intra-town services: Total capacity provided on intra-town services rose $12 Expenditure and revenue (million) only slightly, from 168.2 million passenger place kilometres in 2004/05 to 169.0 million passenger place $10.152 kilometres in 2005/06. This followed the significant $9 $9.627 $8.661 increase in 2004/05 from 160.0 million passenger $8.383 place kilometres in 2003/04. $6 Total capacity on inter-town services fell marginally from 9.6 million passenger place kilometres in 2004/05 to 9.1 million in 2005/06. The Perth to Port $3 $1.517 Hedland road coach service accounted for over 80 $1.279 $1.264 $1.222 per cent of inter-town passenger place kilometres. $0 This service operated on a trial basis for six months 2002/03 2003/04 2004/05 2005/06 during 2003/04. Regular operations commenced Expenditure Revenue during 2004/05 resulting in a 200 per cent increase in passenger place kilometres. $0.750 Regional inter-town services: Expenditure and revenue (million) Regional town bus services:
Passenger place kilometres (million) $0.500 $0.444 $0.459
200 177.8 178.1 $0.233 163.0 $0.250 $0.200 155.5 $0.128 $0.172 168.2 169.0 150 160.0 $0.116 154.4 $0.028 $0.000 2002/03 2003/04 2004/05 2005/06
100 Expenditure Revenue
Patronage 50 Total boardings on regional bus services increased by 9.6 1.1 3.0 9.1 0.8 per cent from 2.278 million in 2004/05 to 2.297 0 2002/03 2003/04 2004/05 2005/06 million in 2005/06. Fare-paying boardings increased by 4.1 per cent from 1.823 million to 1.897 million. Intra-town Inter-town Regional total On intra-town services, while total boardings showed little change, fare-paying boardings reached a peak of 1.892 million for the four-year period since 2002/03, increasing by 3.9 per cent compared with 2004/05.
22 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Patronage on inter-town services recorded significant Regional inter-town services: gains even though the actual numbers were quite small. Patronage (million) 0.006 The increase was 66.7 per cent in total boardings and 150.0 per cent in fare-paying boardings. 0.005 0.005 0.005 Regional intra-town services: 0.004 Patronage (million) 2.5 0.003 0.003 0.003 2.292 2.311 2.0 2.290
2.275 0.002 0.002 0.002 0.002 0.002 1.892 1.837 1.821 1.5 1.800 0.001
0.000 1.0 2002/03 2003/04 2004/05 2005/06
Total boardings Fare-paying boardings 0.5
0.0 Customer Satisfaction 2002/03 2003/04 2004/05 2005/06
Total boardings Fare-paying boardings Passenger satisfaction surveys were conducted during the year only among contractors who were subject to a review. The responses were used to assist in improving services.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 23 school bus services
Introduction and units and seven Regular Public Transport service arrangements. School Bus Services (SBS) Branch is located within the Transperth, Regional and School Bus Division of All “orange” school buses are operated by private the PTA, and manages Government student transport contractors. assistance. This is predominantly provided using Three contract/service models were used to provide contracted “orange” and “green” school buses around student transport support: the State. Alternatively, where eligible students cannot be accommodated on a school bus, their parents/ Composite Rate Model (CRM) Contracts carers are paid a Conveyance Allowance to help meet (20-30 years in duration): 694 some of the costs incurred by them in getting their Fixed term Contracts (Tendered over children to their nearest appropriate school. 1-15 years since 1995): 117 In 2005/06, transport support organised by SBS was Regular Passenger Transport (Licence used by 24,000 students per school day. arrangement with fare subsidy): 7 SBS managed 818 school bus contracts/services and The Composite Rate Model is an average cost model paid a Conveyance Allowance to entitled students at a which was implemented in January 2004 and provides total cost of $70.662 million for Grants and Subsidies. for contractor payments to be reviewed by an It also provided transport assistance to students independent review panel. attending special education schools principally in large regional towns and in metropolitan Perth. Statement of Objectives The school bus network comprised 697 school In 2005/06, the objectives and outcomes of School buses servicing mainstream schools, 114 school Bus Services were: buses servicing special education schools, centres
Objective Outcome Provide transport assistance for eligible students SBS managed 818 “orange” school bus contracts to assist them to attend their nearest and paid a Conveyance Allowance to entitled government or non-government school students at a cost of $70.662 million. offering the appropriate year of study. Ensure the transport assistance provided to Developed a seat belt implementation plan as a students is appropriate, safe, cost effective and is result of the Government’s initiative to fair in its application. progressively introduce seat belts on government- funded school buses. Commenced the roll out of a new Safety Management Plan for school bus contractors. Ensure that all service contracts are managed Reviewed special education bus routes in metropolitan effectively and efficiently in accordance with Perth and regional towns. agreements made between the Minister, the Reviewed school bus routes that serve the fringes of PTA and individual contractors and/or metropolitan Perth. their representatives.
24 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Service The cost efficiency indicator for school bus services measures the cost of place kilometres provided to School bus services: meet student requirements. Student passenger place kilometres
1200 School bus services: Operating cost per 1000 student place 1000 kilometres 964.0 906.0 $100 800 843.0 847.0
600 $80 $81.96 $78.55 400 $60 $69.84 $61.71 200 $40 0 2002/03 2003/04 2004/05 2005/06 $20 The increase in the use of school bus services is mea- sured by comparing the annual number of student bus $0 service place kilometres. 2002/03 2003/04 2004/05 2005/06
Student passenger place kilometres for 2005/06 The increase in 2005/06 was a result of higher showed a slight increase over the previous year. operational costs such as drivers’ wages and fuel.
School bus services: Arrival and departure times The Year’s Developments Introduction of Seatbelts on School Buses 100% The State Government announced on 6 November 95.0% 95.0% 97.0% 2005 that WA would be the first state in the nation 80% 82.0% to ensure seat belts were installed on all dedicated school buses contracted to the State Government. 60% The policy will require from 2006 that all new government-funded school bus contracts must be 40% operated with buses that are fitted with seat belts. In addition, where economically viable, all existing 20% government-funded school buses will be retro-fitted with seat belts. Where it is not economical to retro-fit 0% 2002/03 2003/04 2004/05 2005/06 seat belts on school buses, the buses will be replaced. In the last six months of the financial year, SBS rolled Service reliability measures school bus timetable out 23 new school buses fitted with seatbelts. These reliability for the rural mainstream services and complemented the existing 46 Toyota “Commuters” Education Support School Buses operating in the which are fitted with seat belts and already operating Perth metropolitan area. The reliability measure is on WA roads. arrival less than 10 minutes before school starts and departure less than 10 minutes after school finishes. SBS liaised closely with the WA Department of Education and Training to develop a communication In 2005/06, reliability was back above the acceptable strategy to ensure all students who travel on school level of 90%.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 25 school bus services
buses actually wear the seat belts provided for them. implemented some modified bus routes as part of the In addition, a student code of conduct was being introduction of the Esperance Public Transport Area. developed to monitor and act on non-compliance The modified services began in term 4 in 2005. by students. SBS sees compliance with the code as Customer Satisfaction vital to ensure students remain safe. It will work with school bus contractors and the department to ensure SBS does not measure customer satisfaction as there is a high level of compliance. transport assistance is provided on an entitlement basis. Review of School Bus Services Expenditure SBS continued its review process for school bus services in order to provide the most efficient use SBS’s expenditure for 2005/06 was $74.470 million. of public funds, balanced against high-quality and safe In the Future transport services for eligible students. During 2005/06, locations reviewed were Dumbleyung, Changes in the Government’s policy direction and Northampton, Mukinbudin, Ongerup, Eastern Hills/ new initiatives by the WA Department of Education Wundowie and College Row Education Support and Training such as retention of children at secondary School, Bunbury. The actions to follow these reviews school and potential changes to the compulsory are the adjustment of routes and the change of bus education age will affect SBS in its delivery of student sizes to match the demographics of the area. transport assistance over the next three years. In some cases, school bus services were closed where SBS continues to liaise with the department to ensure there were fewer than four students, in accordance a whole-of-government approach is taken to clearly with student transport policy, or where school identify the financial implications and the impact on closures meant services were no longer required. In student transport assistance. all cases, these changes were in the Wheatbelt where Objectives for 2006/07 student numbers have generally continued to decline. • Continue implementation of seat belts on all The affected services were: Government funded school buses by 2010 in Newdegate South East Mount Magnet Cue accordance with Government policy. Mukinbudin Wialki Mount Walker South • Continue review of school bus routes to maximise Ongerup North West Eastern Hills service delivery and efficiencies in rural Western Australia and Metropolitan Perth. Mundaring Weir • Continue liaison with the Department of The review of services also resulted in a number Education and Training to review student of new temporary or short term services being transport assistance policy with regards to: introduced in areas of rural population growth (i.e. o integration of students with special needs Albany, Australind, Gingin-Bindoon, Comet Bay, Little into mainstream schools Grove, Frenchman Bay, Quairading, Fitzroy Crossing Wamali, Wananami Dodnun, Wandering), and also o compulsory school attendance to Year some growth of special education in metropolitan 12 (2008) Perth and regional towns (i.e. Mandurah, Rockingham, o integration of vocational studies into College Row Bunbury Education). In addition, two school curriculum through increased new “English Second Language” School Bus Services usage of TAFE facilities (Federally funded) were commenced in Mirrabooka and Nollamara. o implementation of student seat belt compliance policy SBS undertook a review of its school buses operating around Geraldton as part of the introduction of a o reviewing transport provision when designated Public Transport Area to better reflect school facilities are opened or closed the operation of intra-town services. SBS also
26 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 transwa
Transwa is the brand and operating name of the public recent equipment upgrades to the new Prospector transport system operated by the PTA which provides railcars and general improvements in reliability. road and rail passenger services to regional centres in the southern half of Western Australia. On-Time Running
Statement of Objectives Transwa: On-time running performance
Transwa’s objective is to provide customer-focused, 100%
safe and cost-effective passenger transport services 99% 99% 98% 97% 95% 95% 95% 95% 90% 89% for regional Western Australia. 80% 89% 88% 88% 87%
Key indicators of performance for Transwa in 2005/06 73% 60% were services to arrive at their destinations within 65%
the acceptable parameters set for punctuality: 52%
40% 44% • Prospector – within 15 minutes for 90 per cent
of services 20% • Australind – within 10 minutes for 90 per cent of services 0% Road Coaches Prospector AvonLink MerredinLink Australind • AvonLink – within 10 minutes for 95 per cent of 2002/03 2003/04 2004/05 2005/06 services • MerredinLink – within 10 minutes for 95 per cent The road coach services continued to perform to of services target, with consistent on-time running across the last • Road coaches - within 10 minutes for 95 per cent four financial years. of services and 90 per cent passenger satisfaction across all rail The improvement in the on-time running of the and road coach services. Prospector in 2005/06 is representative of improved reliability of the railcars as some major problems were Service overcome late in the year. Continued improvement is Transwa: Total passenger place expected in the future. 200 kilometres (million) The introduction of new railcars for the AvonLink and MerredinLink services in August 2005 also resulted in
150 174.0
173.3 improvements in the on-time performance of these 160.4 services. 140.4 133.5 100 133.5 124.5 113.1
50
0 2002/03 2003/04 2004/05 2005/06
Road Coaches Rail
The total of passenger place kilometres for road coaches increased slightly as a result of the completion of the delivery of the new fleet of road coaches (56 seat capacity) which occurred in 2004/05. The passenger place kilometres for rail services began the recovery to the levels of previous years following
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 27 transwa
Customer Satisfaction receive an excellent response from local police when situations arose on the services. Transwa: Customer satisfaction 100% Prospector and AvonLink trains are equipped with closed-circuit television monitoring of the passenger cabins and a similar system is being considered for the 88% 80% 88% 87% 85% Australind.
60% Patronage
Transwa: Total patronage 40% 600,000
500,000 20% 502,171 490,635 487,625
400,000 488,783 0% 2002/03 2003/04 2004/05 2005/06 300,000 Although overall customer satisfaction levels remained consistent with previous years, Transwa initiated a 200,000 number of measures to provide improved levels of 100,000 service to its customers.
0 2002/03 2003/04 2004/05 2005/06 Cost Efficiency Total patronage on Transwa services increased by 2.4 per cent compared with 2004/05, mainly due to Transwa: Average cost per passenger kilometre increases on the Australind and AvonLink services. $0.40 $0.35 Revenue/Expenditure
$0.30 $0.36 $0.32 $0.25 $0.32 Transwa: Revenue (million) $4.5 $0.20 $0.25 $4.0
$0.15 $0.22 $0.19 $0.19 $4.15 $3.5 $3.8 $0.10 $0.15
$3.0 $3.47 $0.05 $3.2 $2.5 $0 2002/03 2003/04 2004/05 2005/06 $2.0 $2.82 $2.63 $2.15 Road Coaches Rail $1.5 $2.14 $1.75 $1.56 There were some adjustments in the cost per $1.51
$1.0 $1.45 passenger kilometre as a result of changes in the $0.5 $0.195 $0.120 $0.104 $0.095 $0.096 allocation of overhead costs between road and rail $0.0 services and lower passenger kilometres due to Australind AvonLink MerredinLink Prospector Road Coaches reliability issues with the Prospector. 2002/03 2003/04 2004/05 2005/06
The 10 per cent increase in revenue was a reflection Passenger Safety of the annual increase in fares coupled with a 2.4 per Very few instances of anti-social behaviour which cent increase in overall patronage figures. threatened the safety of other passengers were experienced during the year. Transwa continued to
28 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Transwa: Expenditure (million) Review of Performance
$50 Trains Description of Services
$40 Transwa operated 62 scheduled rail services every week during 2005/06 covering four distinct services. $41.83 $41.11 $30
$35.54 On the South West Railway between Perth and Bunbury, the Australind train operated 28 services $28.58 $20 per week. The Prospector operated 18 times a week (nine services each way) between East Perth
$10 and Kalgoorlie. The AvonLink operated 10 services a week from Northam to Midland on weekdays and the
$0 MerredinLink provided an all stops service between 2002/03 2003/04 2004/05 2005/06 East Perth and Merredin and return each Monday, Wednesday and Friday (six services per week).
Expenditure increased due to a number of reasons These services operated a total including rising fuel prices and wage increases. of 969,161 service kilometres. Service Information The train fleet consists of 14 railcars made up of seven The introduction in August 2005 of a new train for Prospector railcars, two the AvonLink service as well as equipment upgrades AvonLink railcars and five for the Prospector railcar sets boosted the overall Australind railcars. on-time performance for the year and promises to deliver further improvements for 2006/07. Transwa employs 17 railcar operators based in Perth and Transwa road coach operations continued to provide Bunbury. a high level of service, with excellent on-time performance and a high level of amenity provided by The on-board services on the the new fleet of five-star coaches. Australind are provided by eight Bunbury based on-train staff In the Future while a contractor provides A new-look train the on-board services on the was introduced for Transwa will continue to provide customer-focused, Prospector, AvonLink and the AvonLink and safe and cost-effective passenger services and MerredinLink. MerredinLink services. will increasingly focus on delivering a high level of customer service. To ensure it understands customer requirements, Transwa has committed to engaging with community groups and to communicate with its customers. Work will continue on reviewing services around the State to ensure that appropriate changes are made as the requirements of customers’ change.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 29 transwa
The Year’s Developments Patronage From February to April of 2006, Transwa released one Transwa trains: Patronage Prospector train at a time for equipment upgrades 180,000 designed to improve mechanical reliability. These 160,000 upgrades resulted in immediate improvements in on- 140,000 153,244 time performance and renewed confidence in the 154,044 120,000 152,691 Prospector service, as the following graph shows. 100,000 138,741
80,000 Transwa trains: Prospector 88,291 87,541 85,407 on-time performance 60,000 86,133
100% 40,000 80% 86%
84% 20,000 16,281 16,242 82% 82% 16,216 16,122 8,213 78% 78% 78% 8,054
60% 74% 73% 127
62% 0 40% 61% 2002/03 2003/04 2004/05 2005/06 40% 20% Australind Prospector 0% l AvonLink MerredinLink ly y ry h y Ju rc ne Apri Ma Ju August ember Januar brua Ma October Fe September Nov December Patronage levels have remained virtually unchanged for the last three years. The reduction in Australind The performance of the Australind service recovered patronage in 2004/05 was due to track re-sleepering from the disruptions caused by a five-month re- works which resulted in some services being replaced sleepering program in 2004/05. The new high-quality by road coaches. track offered greater comfort and improved running times for Australind services. Unfortunately, the year’s Customer Satisfaction on-time performance does not show a significant Transwa trains: Customer satisfaction improvement over previous years due to signalling 100% problems caused by vandalism of signalling wire at 94% 92% 89% Mundijong in March 2006. With repairs under way at 80% 88% 87% 83% 82% 78%
year’s end, it is expected that the Australind’s on-time 78% 77% performance will improve during 2006/07. 60%
Transwa trains: 40% On-time performance (all services) 100% 20% 99% 99% 98% 97% 90% 89% 80% 89% 88% 88%
87% 0% 2002/03 2003/04 2004/05 2005/06 73% 60% Prospector Australind 65% AvonLink & MerredinLink 52%
40% 44% Note: The AvonLink service was included in the survey for the first time in 2004/05. 20% The effect of improvements in the on-time running performance of the Australind was offset by falls in 0% Prospector AvonLink MerredinLink Australind satisfaction with the AvonLink and Prospector services.
2002/03 2003/04 2004/05 2005/06
30 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 A number of measures were being implemented at boost fans for drivers and additional protection for year’s end to improve the level of service and it is the steering gear. expected that an increase in customer satisfaction will Additionally, minor improvements were made to the result. road coach depot in East Perth. Infrastructure Transwa road coaches: On-time performance An Australind refurbishment program began during 100% the year and will continue in 2006/07. Under the 95% 95% 95% program, the passenger saloon areas and mechanical 95% 80% equipment of the Australind rollingstock are being upgraded. 60% The installation of an additional maintenance pit further improved facilities at the new Kewdale Railcar 40% Depot. This permits both routine and unscheduled maintenance of Transwa railcars to be carried out simultaneously. The depot now provides facilities for 20% servicing, repairs, cleaning, provisioning and secure stowage together with driver management and book- 0% 2002/03 2003/04 2004/05 2005/06 on offices. Commonwealth funding was arranged, and a formal Patronage agreement is expected soon, for extensions to the crossing loops on the railway between Perth and Patronage for the road coach services remained Kalgoorlie which will improve the on-time performance relatively consistent with previous years. of both the Prospector and MerredinLink services. Transwa road coaches: Patronage Road Coaches 300,000 Description of Services Transwa operates road coach services on a 250,000 comprehensive network which extends to Kalbarri, 200,000 239,077 239,268 231,805
Geraldton and Meekatharra in the North, Augusta, 231,717 Pemberton and Albany in the South West and Esperance 150,000 in the South East. The Transwa road coach service is a vital transport link to many small communities in the 100,000 southern half of Western Australia. During the year, Transwa operated 144 separate road 50,000 coach services each week and employed 32 road 0 coach drivers for its fleet of 22 five-star coaches. 2002/03 2003/04 2004/05 2005/06
The Year’s Developments A range of modifications was undertaken on the road coach fleet during 2005/06 to improve the safety and comfort for passengers and staff. These include modifications to the coach luggage bins and doors, installation of privacy blinds and air-conditioning
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 31 transwa
Customer Satisfaction
Transwa road coaches: Customer satisfaction
100% 94% 91% 90% 80% 90%
60%
40%
20%
0% 2002/03 2003/04 2004/05 2005/06
Transwa’s attention to its customers’ needs, and the high levels of comfort, reliability and on-time performance of its fleet of five-star coaches, were reflected in the continuing high level of customer satisfaction.
Infrastructure Transwa introduced systems to closely monitor the performance of the coach fleet to assist in improving maintenance. This will provide important information for Transwa in considering the optimal time for fleet replacement.
32 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 pta people
At 30 June 2006, there were 1,053 full-time-equivalent being carried out by individuals. The revised process staff members of the PTA. for salaried staff and new format for wages employees Strategic People Management resulted in a marked increase in the PDP usage rate. Training in the PDP process and performance The People Reference Group, which was formed management was delivered on-line, utilising flexible, in June 2004, continued to provide advice directly self-paced e-learning courses. to the PTA Executive on key people strategies. This Leadership Training included significant input into the formation of the 2006 Employee Opinion Poll, consideration of new The third intake of corporate initiatives, recommendations on leadership supervisors and managers matters and internal communication. commenced Front Line Management training in To ensure continuing expertise and skills are available 2004/05, including the to meet the PTA’s business objectives, key strategies completion of work- in the PTA’s Building Capability Workforce Plan were based projects relating to implemented, such as a succession management operational issues. Upon strategy, an individual development planning process, completion in 2005/06, mentoring guidelines and phased retirement options. participants received a The PTA is an equal opportunity employer committed Certificate IV in Business to achieving greater workforce diversity. The strategies (Frontline Management), in the PTA’s Equity and Diversity Management Plan ensuring that PTA 2004-2006 identify and set priorities to improve equity managers hold nationally- and service delivery through increasing diversity. The recognised qualifications. Director of Equal Opportunity in Public Employment The inaugural PTA commended the plan as a best practice example of Leadership and Therese Martinovich planning in this critical area, with the PTA providing an Development Program became a suburban overview of the planning process at a Diversity Forum was undertaken with a train driver, joining her held by the Office of Equal Employment Opportunity. group of middle and senior father Peter (left) and Innovation is a key driver of sustainable business managers. The program uncle Bernie who are performance. The PTA developed an internal was tailored to meet the long-serving members of interactive software program harnessing employee specific needs of PTA the PTA - Therese and suggestions for improvement in processes, systems managers. It is designed Peter also fly planes. and customer service. Since the inception of the to consolidate existing program in 2005, more than 120 employee-initiated management skills and develop the more strategic skills suggestions have been received and assessed. associated with planning, leadership and workforce Workforce Planning planning. On completion, participants received an Advanced Diploma of Business Management. To meet its future business objectives and to ensure it has the required ongoing skills and expertise, As a result of a management development project the organisation began a process of reviewing the undertaken by the Organisational Development workforce plan and new strategies will be progressively Team, the PTA developed a Professional Development implemented in the forthcoming year. Capability Framework. The competency elements in the framework will assist managers and supervisors Performance and Development Plans identify development needs, and serve as a guide in The Performance and Development Plan (PDP) planning future development programs and training process ensures a link between the strategic and courses. operational plans, and the key tasks and projects
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 33 pta people
Developing a Learning Organisation complemented with health promotion information and activity programs such as gym circuits and yoga. Apart from the co-ordination of access to a wide range of professional development courses for PTA PTA people were encouraged to participate in employees, the Study Assistance Policy provides charity-related activities. During the year, about 130 significant support staff participated in the Asthma Foundation Bike Hike, with fees and Radio Lollipop, Loud Shirt Day for Telethon, Activ paid time off for Foundation City to Surf and the Fremantle Triathlon. employees to pursue Competency-Based Training both undergraduate and postgraduate The PTA is a Registered Training Organisation qualifications. The (RTO) whose purpose is to provide quality training policy includes and assessment services for the PTA in compliance provision for a with the Australian Quality Training Framework and Kate Babidge is one of Chief Executive established best practice guidelines. Transperth’s suburban train Scholarship fund of The PTA RTO is scoped to issue Certificates II and drivers. $20,000 per annum. III in Transport and Distribution (Rail Operations) Employee Engagement from the TDT02 Transport and Distribution Training Package. The PTA surveyed all its employees in May 2006 through an “opinion poll” conducted by an external A number of initiatives were undertaken by the RTO polling organisation. in 2005/06. These included: Analysis of the results showed that the levels of • Implementing the Janison database to facilitate engagement, trust and respect improved significantly the centralisation of training records from across since the last survey in 2003. The PTA accomplished the organisation. a rating in the top quarter of 180 public and private • Launching PTA On-line in June 2006 to provide organisations across Australia which were used online learning opportunities for all staff. to compare employee job satisfaction, motivation, • Developing and reviewing competency profiles commitment, pride and willingness to recommend the for Signal Technicians and Maintainers, Overhead PTA as an employer. Catenary Maintainers, Passenger Ticketing Assistants and Transit Guards. The results were subsequently made available to all • Delivering and administering re-qualification staff through briefings by senior managers. The PTA training for a number of operational areas. Executive also made a commitment for continuing • Managing the $1.5 million training contract for attention to the areas of priority action identified by Transperth Train Operations. staff. In 2005/06, the RTO team developed, delivered and Public Sector Standards in Human reviewed competency-based training programs for Resource Management the following courses: The PTA advertised for 221 recruitment processes in • Transit Guard training (new employees and re- the last financial year. No substantiated breaches were qualification) found against any human resource standard. • Urban Railcar Driver training (new employees Healthy Living and re-qualification) Following a corporate wellness program first delivered • Customer Service Assistants in 2003, the organisation continued to provide • Passenger Ticketing Assistants access to professionally-delivered fitness assessment • Counter-terrorism and training for PTA employees. This program was • SmartRider
34 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Training Summary
Competency-Based Training in 2005/06 PTA Staff Contract Staff Number of courses delivered 64 4 Number of people trained 705 41 Total training days 3,744 385
This commitment to training was recognised by industrial award titled Public Transport Authority the Australian Department of Education, Science (Transwa) Award 2006. It too was ratified by the and Training and PTA was presented with the 2005 Western Australian Industrial Relations Commission. Australian Training Award for excellence in Transport The PTA also successfully negotiated five separate and Logistics. enterprise agreements that removed restrictive work The PTA was also recognised by the Western practices which had been major sources of industrial Australian Department of Education and Training for disputation with unions. The five agreements are: outstanding achievement in vocational education and • Public Transport Authority Railcar Drivers’ Agreement training as a finalist in the 2005 Western Australian 2006 (covering railcar drivers engaged in Training Excellence Awards (Large Employer of the Transperth Train Operations); Year). • Public Transport Authority (Transwa) Enterprise Professional Development Training Agreement 2006 (covering all wages employees including railcar drivers, road coach operators A wide range of professional development training and and passenger service assistants engaged in education opportunities is offered to all employees Transwa); through the WELL program. Courses offered include: • Public Transport Authority Railway Employees’ • Computer training (Word, Excel, Outlook, Enterprise Agreement 2006 (covering wages PowerPoint) employees employed in Transperth Train • Report writing Operations division and Network and • Successful meetings Infrastructure division); • Managing work priorities • Public Transport Authority Railway Employees’ (Trades) • Emotional intelligence Enterprise Agreement 2006 (covering all wages • Workplace trainer and assessor employees with trade qualifications); and • Salaried Officers’ Certified Agreement (Public Labour Relations Transport Authority) 2006 (covering all salaried The Organisation reviewed and modernised the employees of the Public Transport Authority). Railway Employees Award and the Government Railways Locomotive Enginemen’s Award [now titled Public Transport Authority Railcar Drivers (Transperth Train Operations) Award 2006] to ensure that they are easy to understand and support workplace efficiency. The awards were then ratified in the State Industrial Tribunal. Arising out of the award review and modernisation, the Organisation also created a new award amalgamating The General Manager of Transperth Train Operations, all the occupational groups in Transwa under a single Pat Italiano, initiated information forums for staff.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 35 the pta executive
Reece Waldock Mark Burgess Kim Stone Pat Italiano Hugh Smith
Reece Waldock years. Kim has worked in both the State and Federal Chief Executive Officer Government arenas in addition to a number of roles in the private sector, including running his own management Reece has 22 years experience in strategic management consulting business. His background is in engineering and with particular expertise in organisational reform. He management. held a number of senior executive roles within the Department of Commerce and Trade and Department Kim is responsible for managing Transwa’s regional rail of Transport from the early 1990s through to the end and road coach network as well as implementing the of 2000. In December 2000, following the sale of the rail strategic elements of PTA’s corporate plan which apply freight business of The Western Australian Government to Transwa. He is also responsible for the delivery of key Railways Commission, Reece acted in the position of performance indicators in the areas of customer service, Commissioner of Railways until the Railways Commission maintenance and revenue building within Transwa. was extinguished on 30 June 2003. Pat Italiano With the creation of the Public Transport Authority on 1 General Manager, Transperth Train Operations July 2003, Reece acted in the position of Chief Executive Officer Public Transport Authority, to which he was During his 33-year railway career, Pat has gained appointed on 17 August 2004. Prior to his career with extensive experience in business management, financial the public sector in Western Australia, Reece held a management, procurement, audit and, more recently, operational experience within an urban rail mass number of senior management roles with BHP. transit environment. A qualified accountant, he also has Mark Burgess considerable experience in strategic management and is a leader in risk management. Executive Director Transperth, Regional and School Bus Services Pat’s role in the Executive includes the commitment to ensuring that the high service delivery standards enjoyed Mark has gained extensive logistic, transport and people on the existing passenger rail network are attained on management skills through 21 years in the Army and eight the passenger rail services being developed to Mandurah years managing the Transperth system. He joined the through the New MetroRail project. PTA at its formation after six years with the Department of Transport and the Department for Planning and Hugh Smith Infrastructure. General Manager, Network and Infrastructure Mark is responsible for managing, coordinating and Hugh launched his engineering career at British marketing the Transperth system, comprising commercial Steel in the United Kingdom and joined the Western bus contractors, a commercial ferry contractor and the Australian Government Railways (WAGR) in 1972 as an urban passenger rail services. He is also responsible Assistant Engineer at the Midland Workshops, where he for regional town bus services and school bus services subsequently held senior management positions in design throughout Western Australia. His focus is on delivering and production. He was appointed General Manager of quality, reliable public transport services through more the Urban Passenger Division in 1994. than 925 transport service contracts across the State. In this role he was responsible for developing strategies Kim Stone for customer focus, reliability of services and improved General Manager, Transwa on-time running of trains. Following the sale of WAGR’s freight business in December 2000, Hugh was appointed Kim joined the PTA in August 2004 after two years’ General Manager, Network and Infrastructure in an secondment from the Department for Planning and organisation focused exclusively on passenger transport Infrastructure as Director of School Bus Reform. He and customer service. had previously been Director of Coastal and Facilities Management in the Department of Transport for four
36 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 John Leaf Cliff Gillam Sue McCarrey Garry Willox Richard Mann
John Leaf and Training including policy development and review, Executive Director, Finance and Contracts strategic planning, Commonwealth-State relations, and she spent time as a school principal. John is a fellow of the Institute of Chartered Accountants and the Institute of Company Directors. He joined the Garry Willox Western Australian Government Railways in 1989 Project Director, New MetroRail and performed a strategic role in the continuous improvement and restructuring of the organisation, Garry was appointed Project Director in April 2000 and as well as its evolution into a customer-focused public has overseen the New MetroRail Project from the end transport service provider. of the planning stage to implementation. He is a Civil Engineer who joined the Western Australian Cliff Gillam Government Railways (WAGR) in 1969, working in Executive Director, People and Organisational district engineering offices. He then held a number of Development senior management positions within WAGR. Cliff is an industrial relations, human resources and From 1988 to 1993 he was Project Manager for the Perth organisational development professional with 16 years Urban Rail Electrification Project and Project Director experience in The Western Australian Public Sector. He for the Northern Suburbs Railway Project. He was then holds post-graduate qualifications in the arts, business, General Manager Engineering and Supply, before joining public policy and management, and is a Fellow of the National Rail Corporation in Sydney. He also worked Australian Human Resources Institute. He believes on major railway works in Thailand between 1998 and that high performance organisations achieve excellence 2000. through a genuine commitment to their people and sustained attention to their development. Richard Mann He joined the Public Transport Authority on secondment Project Director, City Project, New MetroRail in September 2003, and was appointed to the Executive Richard came to New MetroRail with more than 10 in May 2004. years’ experience in project and contract management at government and semi-government level. He joined the Sue McCarrey then Main Roads Department in 1988 after graduating in Acting Executive Director, Safety and Strategy engineering, and spent the next 14 years predominantly in WA’s north-west. He returned to Perth as Manager of Sue joined the Western Australian Government Railways Term Contracts (Metro Region) where he was responsible in June 2002 as the Director of Policy. A law degree and for the maintenance of all of Main Roads’ metropolitan- post-graduate qualifications in policy and administration area assets including the Northbridge tunnel. He was provide Sue with expertise in government policy and seconded to the PTA (then WAGR) in April 2002 to administration, including legal frameworks and the help the Perth City Rail Advisory Committee prepare mechanics of government. its second report, including recommendations on the Her expertise also includes making the link between high alignment of the Perth-Mandurah line through the city. level policy and operations within the agency. Prior to When the report was finished and its recommended joining the PTA, Sue worked in a number of government alignment adopted by Government, Richard stayed on to administration roles within the Department of Education head the City Project.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 37 better planning: better services
The PTA’s Strategic Plan is aligned with the State Government’s Better Planning: Better Services (November 2003) strategic planning framework for the WA public sector. The PTA identifies those strategic outcomes specified inBetter Planning: Better Services that relate most closely to its own business. These strategic outcomes are reported below, along with the obligatory reporting requirements specified in the Western Australian Public Sector Annual Report Framework for 2005/06. This section summarises the significant developments and should be read in conjunction with other information presented throughout the annual report.
People and Communities
Goal 1: To enhance the quality of life and wellbeing of all people throughout Western Australia. Strategic Outcomes Relevant to the PTA
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* 6. Safe and secure Western 1 In the metropolitan area, the PTA Australian communities maintained its efforts to provide safe and secure transport services by rail, bus and ferry (see detail in the next item below). In these efforts, it worked closely with State Government and the WA Police. It conducted its annual research of passengers’ perceptions about their safety (see Transperth in this Annual Report). In regional WA, the PTA resolved to put in place protocols detailing the increased levels of security which are to apply as the Federal Government changes the level of security alert. This is anticipated to include pre-departure checking of trains and road coaches. 8. Enhanced safety, security and 1 and 2 The recommendations of a 2005 wellbeing of the vulnerable within functional review of safety our community were progressively implemented through the newly established Safety and Strategy Directorate. Safety improvements will benefit the travelling public and the PTA’s own staff.
38 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* Passenger security on the Transperth train network was increased with the completion of the Urban Securities Initiative Project, with its 622 closed circuit television cameras, a central facility for real-time monitoring of CCTV images and emergency/information booths on stations. There were also 191 Transit Guards as well as other security personnel deployed. Counter-terrorism training was conducted for staff across the organisation.
10. A positive difference to the 4 High disability standards continued lives of people with disabilities, to be progressively implemented in their families and carers the PTA’s infrastructure. These are applied during construction and redevelopment work. Twenty-one of the 59 stations on the suburban train network provide independent access to people with disabilities. Transperth uses fully accessible trains and ferries, and almost half the bus fleet is now also accessible to people with disabilities. Generally, accessible buses are used on off-peak services, so that 60% of total bus service kilometres were provided by accessible buses in 2005/06. In the regions, Transwa’s latest trains and all road coaches are designed to meet the needs of people with disabilities.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 39 better planning: better services
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* 16. Accessible and reliable public 4 74% of street addresses within the transport Perth public transport system are within 500 metres of a Transperth stop providing an acceptable level of service. (An acceptable level of service is defined as an hourly service with at least three trips at 20-minute intervals in the peak-flow direction in the morning and afternoon.)
17. Vibrant communities 1 and 3 Public transport continued to that enhance and promote safety, contribute to this outcome a sense of openess, walkability, our particularly through train and bus rich cultural diversity and the stations which encourage local Western Australian lifestyle transit-oriented development (TOD). The PTA continued its representation on the Government’s TOD committee and undertook TOD-related planning on railway and bus stations in its capital works program. The Government’s Building Better Train Stations program saw the completion of Thornlie Station during the year, and planning for upgrades of Kelmscott, Maddington and East Perth stations.
40 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Obligatory reporting requirements relevant to the PTA
Disability Access and Inclusion Plan (DAIP) The PTA continued to strengthen its relationships with disability support agencies to improve access to public transport for people with disabilities. It began developing the DAIP for 2006-2010. (See Transperth in this Annual Report for additional information.)
Cultural Diversity and Language Outcomes Cross-cultural awareness training was provided for front-line staff, including Transit Guards, to equip them with the skills and knowledge necessary to work and effectively communicate in a socially diverse environment. When passengers whose first language is not English call the PTA call centre, their call can be transferred to the Commonwealth Government’s Translating and Interpreting Service (TIS). The PTA also promotes the TIS number on all its relevant brochures and websites.
Youth Outcomes From October 2005, the Government fulfilled its 2005 election commitment to offer a 50 cent student fare to secondary and primary school students on all State Government controlled/subsidised public transport services in Perth and regional centres. In relation to employment, the PTA continued its graduate recruitment program across a range of technical and non-technical disciplines. Vacation employment for engineering students was provided over the summer break. Three business traineeships were implemented across the PTA. Apprenticeship opportunities were created and work experience for pre-apprentices was trialled.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 41 better planning: better services
The Economy
Goal 2: To develop a strong economy that delivers jobs, more opportunities and greater wealth to Western Australians by creating the conditions required for investment and growth. Strategic Outcomes relevant to the PTA
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* 5. A workforce which reflects 2 Strategies were implemented in the State’s diverse population accordance with the Equity and Diversity Management Plan 2004 - 2006. The plan was being reviewed and updated in line with the new diversity objectives outlined in the Government’s Equity and Diversity Plan 2006 – 2009. The organisation maintained its corporate objective to promote diversity and equity. The PTA targeted recruitment at diversity groups, particularly during mass recruitment drives. The Building Capability Workforce Planning Strategy Report 2004 - 2006 was implemented, with further workforce planning sessions underway for the 2007 – 2009 plan. 8. Greater economic infrastructure 7 The direct freight rail loop line that facilitates new development into North Quay at Fremantle was completed, allowing freight trains to access the port without having to shunt through the former Leighton Marshalling Yard. The Leighton yard tracks were being removed, allowing the rehabilitation and redevelopment works to begin.
42 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome*
Planning for the redevelopment of the Kewdale Intermodal Terminal continued, with stage 1 construction due to commence in the first half of 2007. The site, leased to Pacific National Ltd, is the major intermodal terminal for interstate rail freight in the Perth metropolitan area. The railway portion of the Geraldton Southern Transport Corridor was completed (see The Regions below). 14. Social infrastructure such as schools, 6 Infrastructure produced under the health, facilities and recreational areas New MetroRail project and built and maintained to a high standard the Building Better Train Stations program, as well as other projects, is built and maintained to high levels of safety, service and amenity.
The Environment
Goals 3: To ensure that Western Australia has an environment in which resources are managed, developed and used sustainably, biological diversity is preserved and habitats protected. Strategic Outcomes relevant to the PTA
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* 3. Effective contributions to 3 The PTA continued to implement global efforts to reduce its Sustainability Action Plan greenhouse emissions throughout the year. The PTA assisted the Department for Planning and Infrastructure in its research project into hydrogen- powered buses.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 43 better planning: better services
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* Delivery continued of new (‘B’- series) suburban railcars which are 20% more energy efficient than their predecessors. The Government announced that, during 2006/07, 78 Transperth buses (about 7% of its fleet) will trial bio-diesel. The buses will operate on B5 fuel, which contains 5% bio-fuel. 12. High level of urban air quality 3 The PTA continued its program to replace diesel-fuelled Transperth buses with compressed natural gas buses.
Obligatory reporting requirements relevant to the PTA
Waste paper recycling Waste paper continued to be collected for recycling from the Public Transport Centre in East Perth under contract. During 2005/06, waste paper recycling programs commenced at Transperth’s operations at Claisebrook and Nowergup Railcar Depots, and at Perth, Fremantle, Currambine, Armadale and Midland train stations. Energy Smart Government Policy The PTA is a voluntary participant in the Energy Smart Program. Its Public Transport Centre (PTC) in East Perth is the principal energy consumer of the PTA’s locations. Over the last four years, the PTC has achieved a reduction in energy consumption of 21.6%. This compares with the Government’s Energy Smart objective of 12% by 2006/07. The PTC’s energy performance in 2005/06 was: • Total energy consumption 4,681,111kW (16,852,000MJ) • Total energy costs $436,879 – a reduction of $54,883 or 11.2% on 2004/05 • Total greenhouse gas emissions 5,347 tonnes • Rate of energy consumption 19,919MJ/person/ annum (1,081MJ/m2/annum).
44 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 The Regions
Goal 4: To ensure that regional Western Australia is strong and vibrant. Strategic Outcomes relevant to the PTA
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome*
3. Effective government service delivery to 4 The PTA continued to provide regions that is responsive to the reliable, safe and modern needs of diverse communities transport services to regional WA through Transwa, Regional Town Bus Services and School Bus Services.
5. Improved regional infrastructure 7 The railway portion of the Geraldton Southern Transport Corridor was completed in September of 2005 providing a new rail connection to the Port of Geraldton. The rail infrastructure on the old alignment along the Geraldton foreshore was removed allowing the redevelopment of the town beach to commence.
Obligatory reporting requirements relevant to the PTA
Regional Development Policy Transwa regularly reviews its services to ensure they continue to provide the best possible public transport service within the normal budgeting constraints. During 2005/06, possible changes to South West services were considered and, during 2006/07, Transwa will work closely with South West communities on implementing changes which will better serve the needs of the community.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 45 better planning: better services
Governance
Goal 5: To govern for all Western Australians in an open, effective and efficient manner that also ensures a sustainable future. Strategic Outcomes relevant to the PTA
Government Strategic Outcome Applicable Significant Developments in PTA 2005/06 Outcome* 1. Co-ordinated, integrated high quality 4 The PTA continued to provide an service delivery to the community integrated bus, train and ferry service in the metropolitan area and in regional towns as well as school bus services. 3. Whole of Government approaches 6 The PTA Corporate Plan 2006 - to planning, decision making and 2010 was developed to resource allocation incorporate the State Government’s Better Planning: Better Services strategic goals, Government priorities and portfolio directions. 7. Increased use of Information 6 The PTA increased its use of the Communications and Technology internet to inform its passengers to provide better service to the and the community. The number community of people registered with Transperth’s TravelEasy email service increased by 56% to 32,730 in 2005/06. The PTA worked to maximise accessibility to information on its websites by people with visual impairment including through the greater use of html. (This annual report is presented in both html and downloadable pdf formats.) 10. An efficient Government sector that 5 The PTA continued to provide the provides value for money State’s metropolitan and regional service delivery public transport through competitively tendered, value-for- money contracts, and its own professional staff recruited and trained to deliver quality customer services.
46 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 13. Appropriate and competitive pricing 5 The Government continued to regimes for public goods and services maintain public transport fares at an affordable level by restricting fare increases to the change in CPI. Transwa fares are established by the State Government to ensure affordability for regional West Australians.
Obligatory reporting requirements relevant to the PTA
Equal Employment Opportunity Outcomes PTA maintained EEO performance objectives. The representation of several target groups was higher than Government sector-wide objectives. Other outcomes included: • Increase in access to parental leave and flexible return to work arrangements. • A diversity survey sent to all employees to update diversity data. • Continued provision of contact officer network and peer support program. • Establishment of PTA women’s network.
Evaluations The PTA undertakes routine evaluations of all capital expenditure projects. There were no significant strategic evaluations that impacted on the long-term performance of public transport infrastructure and services in the year. A survey of all PTA employees was held during the year, revealing a significant advance in all key measures of engagement.
Information Statement Reporting In accordance with Section 94 of the Freedom of of Record Keeping Plans Information Act, the Information Statement was developed for placement on the PTA website. It was subsequently adopted in August 2006. The PTA’s Record Keeping Plan, approved in 2004 by the State Records Office, will be reviewed in 2009. The PTA conducted record keeping awareness for staff, particularly new employees.
Compliance with Public Sector PTA policies were in place for all Human Resource Standards and Ethical Codes Management (HRM) Standards. An external human resources audit identified no gaps. The PTA maintained its Grievance Resolution Policy.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 47 better planning: better services
The organisation’s Code of Ethics and Code of Conduct Overview were provided at all Corporate Inductions and at Transit Guard refresher training sessions. PTA did not breach any of the Standards in HRM during 2005/06. Feedback from OPSSC Human Resources Standards, Ethics and Equal Employment Opportunity survey was actioned.
Public Interest Disclosures The Manager Corporate Issues and Compliance is the Public Interest Disclosure officer for the Authority and is responsible for receipt of disclosures of public interest information. The PTA first prepared and published Public Interest Disclosure internal procedures in 2004. During 2005/06, it raised awareness of the Public Interest Disclosure Act 2003 and of disclosure-making through staff inductions, the intranet and posters. Additionally in 2006/07, it will use the intranet to promote public interest disclosure procedures and make presentations to PTA Executive members and complaints grievance officers.
Advertising and Sponsorship See Electoral Act 1907 - Section 175ZE in this Annual Report. Sustainability The PTA’s 5-year Sustainability Action Plan was submitted in February 2005. The plan outlines a number of priority areas to maximise sustainability during the planning, development and operations of its integrated public transport system. The plan also encourages PTA staff to actively participate in activities that make a contribution towards a better future. These activities include energy conservation, recycling, fundraising, travel by public transport and occupational safety and health. The PTA continued to work with relevant external parties to identify opportunities to maximise sustainability during the development and planning of transport services. This includes: • Transit Oriented Development (TOD) planning • Integration of infrastructure for pedestrians and cyclists • Protection and restoration of local air, water, soils, flora and fauna
48 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 • Services to assist people with disabilities Highlights of the implementation of the PTA’s Sustainability Action Plan’s priorities for 2005/06 include: • Development and implementation of its environmental management system after wide consultation within the organisation • Appointment of a sustainability coordinator • Implementation of an environmental induction program • Conduct of an energy audit and building greenhouse rating • Conduct of a water audit and workshop with Water Corporation • Start of bio-diesel bus trials Many objectives and priorities of the Sustainability Action Plan are integrated into other PTA initiatives, for example: • Accessibility for people with disabilities • SmartRider ticketing system • Gas-fuelled Transperth buses • Building Better Train Stations program • New MetroRail project • Disability Access and Inclusion Plan • Reducing greenhouse emissions • High level of urban air quality • Waste paper recycling • Energy Smart Government
Corruption Prevention PTA is committed to risk management (in accordance with Treasurer’s Instruction 825) and worked closely with its insurer RiskCover to meet best practice standards across the whole organisation, as defined in AS4360 “Risk Management”. The Audit Committee has in place an annual plan to ensure that internal controls identified to minimise risk are effectively applied. The PTA’s Procurement Policies and Procedures are accredited to ISO9001.2000 and subject to regular audit. These measures, whilst not specifically designed to prevent corruption, provide a culture of sound governance and effectively minimise the risk of corruption.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 49 better planning: better services
*The PTA’s outcomes are:
1. An extremely high safety standard 2. A committed workforce prepared for current and future needs 3. Increased use of public transport 4. Customers are satisfied with the quality of services 5. A cost-effective service 6. Effective organisational management 7. The long-term value of the freight rail corridor is protected and the railway remains fit for purpose during and after the current lease 8. Residual freight issues managed effectively
50 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 50 Jonathan Beninca’s media interviews and school visits were a prominent feature of the PTA’s track safety and behaviour program. Jonathan lost an arm and leg while trespassing on tracks as a teenager.
This simulator was central in training new drivers such as Eddie McGrath for the new Southern Suburbs Railway.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 51 compliance
1. Rail Safety The PTA Annual Safety Report to the Director Rail Accreditation Safety dealing with the general conduct of railway operations for the year ended June 2005 showed The organisation demonstrated continued compliance there were 605 notifiable occurrences reported with the requirements of the Rail Safety Act 1998 and (Category A and Category B). Notifiable occurrences rail safety accreditation as an owner and operator of are defined in the Rail Safety Regulations 1999 as a railway. Category A (serious injury, death or significant Safety Standards and Measures damage) or Category B (potential to cause a serious accident) and National Definitions under instructions The newly formed PTA Safety and Strategy Directorate issued on 15 December 2004. created a business plan to address the requirements of the existing Australian Standard AS4292.1 and the The number of notifiable occurrences increased as a 2006 replacement Standard. The report addressed result of the change to reporting in accordance with the requirements of the the National Definitions which are much broader in new Standard and the reporting category requirement terms. implementation of the Inquiries and Inspections changes was submitted to the Director Rail Safety in There were three investigations involving Category A accordance with legislative incidents requested by the Office of Rail Safety under compliance. Section 39(3) of the Rail Safety Act: Since the inception of • Incident involving a collision between a passenger the new directorate, a train and motor vehicle at a level crossing in East more integrated approach Guildford. has been developed to • Circumstances involving a motor vehicle that address rail safety and collided with a barrier on the Mitchell Freeway OSH requirements. north of Erindale Road, Warwick. The objective of the • An incident involving the obstruction of a Hotham above work is to ensure Valley Tourist Railway train. legislative compliance Notifiable Occurrences and achieve corporate governance requirements. During the year there were 18 Category A and There is a program of work that is continuing which 587 Category B incidents reported, an increase on will also embrace the legal rail reforms expected to previous years. This reflected the altered requirement be introduced in 2007. to report in accordance with the expanded National Definitions and an increase in rail operations. Compliance Inspections and Reporting Reporting in accordance with the National Definitions The annual rail safety compliance audit was conducted commenced on January 1, 2005. The 2005/06 figures by the Office of Rail Safety in November 2005 and are the first year that all reporting will be carried out a report was issued on 22 December 2005. The Rail in line with the new requirements. Safety Audit found seven non-compliances and 23 observations, compared to 11 non-compliances and 2. Occupational Safety and Health 23 observations the previous year. All but one 2005 The strong focus on safety and health as a core value non-compliances and observations were closed out of the organisation continued during the year. As of at 30 June 2006. The remaining one was closed out 1 July 2005, the new Safety and Strategy Directorate subsequently. There were no directions issued to was established, incorporating the safety and undertake remedial safety work as a result of a safety corporate policy functions of the organisation. One compliance inspection.
52 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 of the directorate’s first activities was to update the to new employees on their first day at work, was PTA’s Safety and Health Policy (corporate statement also revised. The new induction focuses on key issues of intent and commitment), the cornerstone of the relevant to all employees and is intended to be more organisation’s commitment to safety and health, to interactive and engaging. The PTA’s Executive members reflect recent changes to the Occupation Safety and were re-inducted using this new presentation in early Health Act 1984 (OSH Act) and to incorporate an 2006. increased focus on human factor principles in safety. A level four accident/investigation course was also The improved policy is intended to complement introduced in the year which importantly included the organisation’s safety culture change program, by human factor/just culture elements. embedding the safety values of the organisation in OSH Reporting System a functional policy. The revised policy was approved by the Executive and endorsed by the Office of Rail The SiteSafe reporting system, which was launched Safety. on 1 July 2004, enables the organisation to capture reported hazards, near misses and incidents, and The directorate also ran a strategic planning day in facilitates interrogation of data to analyse trends. A free conjunction with representatives from the safety upgrade of the system was successfully completed in teams within each division and identified six key focus April 2006, as part of the original SiteSafe contract. This areas which form the Health, Safety and Environment upgrade affords increased functionality for both users (HSE) Strategic Directions for the organisation over and administrators of the system. A new NetForm for the next 12-24 months. Hazard Reporting was launched in October 2005. This Safety committees continued to function effectively. NetForm enables users to report hazards proactively, Safety representatives attended a transitional training assess the risk, record control measures and assign course for the changes to the OSH Act, which included and track actions to make the workplace safer. Provisional Improvement Notices. Injury Management Training In 2004/05, the PTA implemented improved workers’ Training in occupational safety and health continued compensation and injury management practices. to be a priority, with many managers and supervisors The year saw the continued development of this completing a two-day training course on their area with the appointment of an Injury Management occupational safety and health responsibilities. Coordinator and later the appointment of an Injury Management Assistant. A review of current policies A series of workshops was conducted in August 2005 and procedures was conducted and several areas of to inform and educate supervisors and managers on improvement were highlighted. The recommended managing OSH risks with contractors. These sessions improvements included more transparent systems of also incorporated information on recent changes work, improved document control and the provision to the State’s OSH Act. Ninety-five managers and of supernumerary duties funded by the insurer to supervisors from all divisions attended the workshops, increase the amount of duties available to assist in the engaging in a tailored case study. rehabilitation of injured workers. This subsequently A contingent of PTA’s safety and health representatives, improved the PTA’s ability to manage claims and as well as several supervisors, managers and safety ensured compliance with legislation whilst reducing coordinators, also attended the 2005 WorkSafe overall costs. Forum where they heard from and questioned a panel The total number of injuries sustained by PTA of safety experts and presenters on issues such as the employees remained steady compared with national agenda, long work hours, bullying and young 2004/05. The lost-time injury frequency rate for the workers. organisation for the year was 48.44 per million hours The corporate safety induction, typically presented worked, compared with 49.24 for the previous year.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 53 compliance
The duration of lost-time injuries decreased from a Testing for Alcohol and Other Drugs 2004/05 average of 20.06 days to a 2005/06 average Random and “for cause” testing of employees and of 16.08 days. contractors for alcohol and other drugs continued These results suggest that the PTA’s improved workers’ throughout the year as part of the organisation’s compensation and injury management practices alcohol and other drugs program. functioned to get employees back to meaningful work The PTA’s positive results for illicit substances sooner after an injury. continued to be below the industry average. The Health Assessment Standards organisation continued to monitor trends to ensure On July 1 2004, the National Transport Commission that the alcohol and other drugs awareness sessions introduced the National Standard for Health Assessment it provides reflect such changes, thus maintaining of Rail Safety Workers. The Standard applies to all relevance and aiming to maximise their effect. rail safety workers as defined in the Rail Safety Act. It relates to health assessments and procedures for monitoring the health and fitness of workers to perform rail safety duties. The phase-in periods for these health assessments ended this financial year, with all Category 1 assessments requiring completion by 31 December 2005 and all Category 2 assessments by 30 June 2006. With the exception of some employees on workers’ compensation, all Category 1 and 2 health assessments were undertaken by their respective phase-in dates. Regular updates continued to be provided to all divisions to ensure the currency of safety critical health assessments was maintained. To assist with this goal, a project is currently underway to transfer all health assessment records from the PTA’s HR system to the SiteSafe system, which will enable them to be managed more effectively using custom-made recording and reporting mechanisms. This project is scheduled for completion in the first quarter of the 2006/07 financial year. Procedures were developed and processes were put in place to ensure that the PTA completes the relevant medicals in the allotted time frame. A Health Management Plan is in place which documents the process for managing employees who are deemed temporarily or permanently unfit for their particular risk category.
54 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 55 explanation of major capital expenditure variation 2005/06
(a) Budgeted estimates and actual results for 2005/06
Budget Actual Variation Comments $000 $000 $000 Metropolitan & Regional Passenger Services Station Facilities Improvements 7,667 ,989 5,678 Project scheduling School Buses 4,000 79 3,821 Project delayed Electric Railcar Modifications 5,710 ,230 3,480 Project delayed Perway Track and Associated Works 5,908 ,488 3,420 Project scheduling Claisebrook Depot Upgrade 2,549 97 ,252 Project scheduling Wheel Lathe - Nowergup 2,230 5 ,178 Project delayed Regional Rail Station Program 2,330 55 ,779 Project scheduling Rockingham Transit System 6,000 4,608 ,392 Project scheduling Computing Hardware & Software 1,456 97 ,359 Project scheduling Claisebrook Washdown Plant 1,300 0 ,300 Project delayed Concrete Re-sleepering Project 9,419 8,183 ,236 Project scheduling New Train Control Centre 3,130 ,098 ,032 Project scheduling Metro Bus Acquisitions 32,286 31,633 653 Project scheduling Perth Station Barriers & Associated Works 2,869 ,445 424 Project scheduling Safer Rail Initiative 40 ,331 (1,929) Project scheduling Other 30,728 0,788 9,940 Project scheduling Corporate Geraldton Southern Rail Corridor 13,49 ,325 ,166 Project scheduling New MetroRail 431,689 476,689 (45,000) Project scheduling
Grand Total 563,164 567,983 (4,819)
56 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 (b) Major Uncompleted Works
Description of Work Estimated Total Cost Estimated Cost Year of Completion (as per Budget) to Completion $000 $000
New MetroRail 1,613,173 329,758 2006/07 Bus Acquisitions 398,309 179,031 2010/11 Station Facilities Improvements 49,168 46,994 2010/11 Concrete Re-sleepering Project 60,060 46,752 2010/11 Split and Replace Radio System 12,215 11,400 2010/11 Smartcard Ticketing Project 29,152 8,259 2006/07 Accessible Public Transport Upgrade Program 8,577 6,902 2006/07 Rockingham Transit System 10,800 6,192 2006/07 Claisebrook Depot Upgrade 6,100 4,251 2006/07 North Quay Rail Loop 14,910 2,185 2006/07
(c) Major Completed Works Total Cost $000 Buildings 17,140 Freight Network Infrastructure 50,587 Rollingstock 106,005 Software 621 Rail Infrastructure 106,309 Plant, Equipment & Motor Vehicles 989 Bus Infrastructure 500 Buses 26,152 Total 308,303
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 57 Electoral Act 1907 - section 175ZE
In compliance with section 175ZE of the Electoral Act 1907, the Public Transport Authority of Western Australia is required to report on expenditure incurred during the financial year in relation to advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations. The details of the report are as follow: 2006 $ Expenditure with Advertising Agencies: Buspak Advertising Group 27,000 Character Creations 2,780 Concept Media 1,168 Definition 66,290 Design Graphic Management 4,525 Discus Digital Print 50,705 Esperance Holdings Pty Ltd 8,409 Exposure Print Strategies 23,992 Gatecrasher Advertising 335,264 Image Source 86,964 Information Radio 7,800 Jason Signmakers 1,537,191 Key 2 Design 144,094 Market United Pty Ltd 51,195 Reel Image Pty Ltd 40,635 The Creative Page 19,717 2,407,730 Expenditure with Market Research Agencies: Centre for Industry Research 18,948 Patterson Market Research 72,963 Taylor Nelson Sofres 204,704 296,615 Expenditure with Polling Agencies: Nil Expenditure with Direct Mail Agencies: Nil Expenditure with Media Advertising Agencies: Advance Press Pty Ltd 930,290 Countrywide Publications 7,209 Hello Perth and Fremantle 4,368 JMG Marketing 1,636 Marketforce Limited 220,259 Media Decisions 545,953 Picton Press 5,034 State Law Publisher 4,739 1,719,489
TOTAL EXPENDITURE 4,423,834
58 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 59 certification of key performance indicators For the year ended 30 June 2006
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PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 61 audited key performance indicators
To make its contribution to the Government’s goal ‘To The indicators of success in running these services enhance the quality of life and wellbeing of all people are based on the use of public transport, accessibility, throughout Western Australia’, the PTA has adopted reliability, customer satisfaction, safety and cost two outcomes: effectiveness. . Accessible, reliable and safe public transport The PTA aims to achieve the second outcome - system protection of the long-term functionality of the freight . Protection of the long-term functionality of the rail corridor and railway infrastructure - through its rail corridor and railway infrastructure quality management of the rail corridor and residual It aims to achieve the first of these outcomes through issues for the rail freight operations which were leased the: to private sector operators in 2000. • Metropolitan and Regional Passenger Services Links to the Government Strategic – these include Goal o Perth Metropolitan Train, Bus and Ferry The links to the Government Strategic Goal are Services of Transperth and presented in the table below: o Regional Town Bus Services; • Country Passenger Rail and Road Coach Services of Transwa; and • Regional School Bus Services.
Government Strategic Goal(s) PTA Outcomes Services
To enhance the quality of life Accessible, reliable and . Metropolitan and regional and wellbeing of all people throughout safe public transport passenger services Western Australia. system 2. Country passenger rail and road coach services 3. Regional school bus services Protection of the long 4. Rail corridor and residual term functionality of the freight issues management rail corridor and railway infrastructure
Measuring Performance The PTA’s effectiveness in providing an accessible, Outcome: Accessible, reliable and safe public reliable and safe public transport is measured using transport system the following key effectiveness indicators: EFFECTIVENESS INDICATORS . Use of Public Transport . Accessible Public Transport The PTA’s outcome of an accessible, reliable and 3. Service Reliability safe public transport system is achieved through the 4. Level of Overall Customer Satisfaction provision of the following services. 5. Customer Perception of Safety • Perth metropolitan train, bus and ferry services 6. Level of Notifiable Safety Incidents of Transperth; • Regional Town Bus Services; • Country passenger train and road coach services of Transwa; and • Regional School Bus Services
62 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 1. Use of Public Transport Transperth Train Services The use of public transport is measured by comparing
the annual number of passengers carried with the 4.89 4.64 number of service kilometres. Service kilometres 4.56 4.19 are kilometres operated on scheduled passenger 4.07 services and excludes “dead running”, i.e. buses/trains travelling from the depot to commence a service trip, and travelling back after completing a service trip. The measure indicates the extent to which services provided, as represented by the number of kilometres 2002/03 2003/04 2004/05 2005/06 Target 2005/06 operated, are being utilised. An increasing trend in the Passengers per service kilometre indicator will generally signify that patronage is rising at a rate greater than the rate of increase in service The extension of the rail network to Thornlie in kilometres operated and represents an improvement August 2005 resulted in service kilometres increasing in effectiveness as well as an increase in the use of by 13.6%, compared to the previous year actual. public transport. The target was set to take account of the increase in service kilometres, and an estimate of increasing This effectiveness indicator is applied to each mode patronage of the rail extension. Actual boardings of public transport. The indicator is based on total increased by 4.5%, surpassing the targeted increase. boardings on Transperth services and includes fare- paying boardings plus free travel and transfers. Transfers are boardings which occur either between Regional Town Bus Services services within the same mode or between modes The passengers per service kilometre have in the during the specified free transfer time. past years been reported as a single indicator for both intra-town and inter-town services. Intra-town Transperth Bus Services services operate within rural town boundaries, while inter-town services run between regional centres. In order to provide a more meaningful result in 1.30
1.29 reporting on the performance of regional town bus 1.27 1.23 1.18 services for 2005/06, the services have been split into intra-town and inter-town components.
2002/03 2003/04 2004/05 2005/06 Target Passengers per service kilometre 2005/06
The results for 2005/06 were higher than the previous year’s actuals following an increase of 3.3% in total boardings compared to an increase of 1.2 % in service kilometres.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 63 audited key performance indicators
a. Intra-Town Bus Services The 2004/05 actual passenger per service kilometre was only 0.008 primarily due to the performance of the Perth to Port Hedland road coach service during
1.058 this year, carrying an average of only 0.006 passengers 1.031 0.969 0.966
0.952 per service kilometre. This improved to an average of 0.011 passengers per service kilometre in 2005/06.
Transperth Ferry Services
2002/03 2003/04 2004/05 2005/06 Target
2005/06 14.55 Passengers per service kilometre 13.59 13.16 13.06 12.49
For regional intra-town services, the result for 2005/06 slightly exceeded the target set for the year and was in line with the 2004/05 performance.
2002/03 2003/04 2004/05 2005/06 Target b. Inter-Town Bus Services Passengers per service kilometre 2005/06
2005/06 results were above target as a result of an 0.017 0.016 0.016 increase of 9.1% (compared to the previous year) in ferry boardings, reversing the declining trend seen during the recent past. The 2005/06 results were also affected by the decline 0.008 0.007 in service kilometres which have fallen by 4.5% due to the service rationalisation introduced on 1 May 2005 2002/03 2003/04 2004/05 2005/06 Target when Coode Street services ceased. Passengers per service kilometre 2005/06 The reallocation of resources to focus on the primary demand for services between Barrack Street and The result of 0.016 passenger per service kilometre Mends Street has resulted in a significantly better was higher than the 2005/06 target. This was as a performance compared to the previous three years. result of: a. The target for 2005/06 did not include the Perth to Port Hedland road coach service because the future of this service was subject to successful trial; and b. The target did not include the Roebourne youth bus service which was a new service introduced during the year.
64 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Transwa Train Services 2. Accessible Public Transport
Accessibility to public transport, in terms of service coverage, is measured as the proportion of Point 0.279 0.279 0.266 0.272
0.265 Street Addresses (PSAs) within the Perth Public Transport Area (PPTA) which are within 500 metres of a Transperth stop providing an acceptable level of service. PSAs’ data is obtained from the Department of Land Information (DLI) and defines the central part of a street address. The PPTA is the area where 2002/03 2003/04 2004/05 2005/06 Target Transperth services operate and the frequency of Passengers per service kilometre 2005/06 services is on average 3 trips per hour or more in the peak direction, or where a Transperth bus runs catering for students. The 2005/06 results were higher compared to target “Acceptable level of service” is defined as an hourly and have been impacted by a reduction of 6.6% in service during the day with at least three trips per service kilometres with a corresponding decrease hour (i.e. at 20-minute intervals) in the peak flow of only 4.5% in boardings. The reduction in service direction in the morning and/or afternoon peaks. kilometres and total boardings has been as a result The indicator uses PSAs data from DLI and service of derailments of freight trains, track works and less information and stop location data from the Transperth services run by railcars due to mechanical problems Route Information System (TRIS). with the new Prospector railcars. The measure demonstrates the extent to which the PTA meets its accessibility standards in the Perth Transwa Road Coach Services metropolitan area. 0.078 0.074 0.074 0.072 0.071 74.1% 70.0% 70.6%
2004/05 2005/06 Target 2002/03 2003/04 2004/05 2005/06 Target 2005/06 The proportion of street addresses Passengers per service kilometre 2005/06 within the PPTA which are within 500 metres of a Transperth stop providing an acceptable level of service 2005/06 was below target following a reduction in This is a new measure and comparative data for actuals 2002/03 total boardings of 2.4% (compared to the target), as and 2003/04 is not available. a result of the flooding in Esperance and Lake Grace A significant increase has been recorded in2 005/06 in which resulted in Transwa being unable to operate the proportion of PSAs within the PPTA which were services. less than 500 metres of an acceptable level of service stop. The improved result is due to a significant increase (13.5%) in the number of PSAs within the PPTA from 623,548 in March 2005 to 707,455 in March 2006. The number of stops remained unchanged.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 65 audited key performance indicators
The results demonstrate that the PTA meets its Transperth Train Services accessibility target in the Perth metropolitan area. 96.40% 95.00%
3. Service Reliability 94.38% 89.30% 86.93% According to an independent survey to measure customer satisfaction, service reliability is ranked as one of the most significant characteristics of a quality service. Service reliability is essentially a combination of two main factors, punctuality and consistency. 2002/03 2003/04 2004/05 2005/06 Target Services are considered to be punctual if they arrive Percentage of services arriving within 2005/06 within a limited period of time after the scheduled ‘on-time arrival’ parameter arrival time. These parameters referred to as ‘on-time arrival’ are shown in the table for each operation. On-time running delays for the metropolitan train services were experienced as a result of: Operation ‘On-time arrival’ • operational issues related to the Thornlie line parameter commissioning; Metropolitan and Regional Passenger Services • speed restrictions due to resleepering; Transperth Trains 3 minutes • line closures for the new works associated with Transperth Buses 4 minutes the Southern Suburbs railway project; and Transperth Ferries 3 minutes • line congestions.
Country Passenger Rail and Road Coach Transperth Bus Services Services Transwa Rail Prospector 15 minutes 92.90% 92.75% 91.71% Australind 10 minutes 91.50% 85.00% AvonLink 10 minutes MerredinLink 10 minutes Transwa Road Coaches 10 minutes
Regional school bus services 2002/03 2003/04 2004/05 2005/06 Target Regional school bus services Drop off no Percentage of services arriving within 2005/06 less than 10 minutes ‘on-time arrival’ parameter before school starts and pick up within 10 minutes of school ending This KPI is calculated using a sample which ties in with Transperth’s internal monthly punctuality audit The ‘on-time arrival’ measure demonstrates the plan. The total number of observations made in the extent to which the PTA meets its service reliability year 2005/06 was 21,064. The sample error estimate standards. was within + or – 0.67% at 95% confidence level for Transperth Bus Services.
66 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 The general network of Transperth bus services a. Prospector performed at a high level of reliability consistent with previous years. The southern suburbs bus services 90% 90% succeeded in minimising the impact of construction 89% works associated with the Southern Suburbs 73% Railway on bus punctuality through improved traffic management schemes and timetable adjustments. As a result of these measures the actual result for 44% 2005/06 was better than the target. 2002/03 2003/04 2004/05 2005/06 Target 2005/06 Transperth Ferry Services Percentage of services arriving within ‘on-time arrival’ parameter
The 2005/06 results were below target due to 98.00% 98.00% 98.00% continuing mechanical problems experienced with railcars. The results were also affected by a significant increase in freight traffic which required more train crossings, thus increasing travel time. The improvement in the on-time running over 2002/03 2003/04 2004/05 2004/05 are representative of improved reliability of Percentage of services arriving within the railcars as some major problems were overcome ‘on-time arrival’ parameter later in the year and continued improvement is expected in the future. The ‘on-time arrival’ parameter has been dropped for 2005/06 as the data provided in previous years b. Australind has been based on estimates. Currently the ticketing system is used to confirm that the numbers of
scheduled trips are actually performed. 90% 88% 88% 87% Additionally it should be noted that the Passenger
Satisfaction Monitor survey has revealed that patrons 65% have expressed an extremely high level of satisfaction with ferry reliability.
2002/03 2003/04 2004/05 2005/06 Target Transwa Rail Services Percentage of services arriving within 2005/06 Indicators on the ‘on-time arrival’ for Transwa rail ‘on-time arrival’ parameter services have been reported separately for each of the different services run. The target for 2005/06 could not be achieved as a result of: . Resleepering of track between Brunswick and Picton by WestNet Rail. This section has now been completed; and . Automatic signalling functionalities lost following
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 67 audited key performance indicators
the theft of signal wires by vandals resulted in Transwa Road Coach Services the operation of manual controls. An upgraded signalling system which will prevent future 95% 95% 95% 95% problems of this nature being installed. 95% c. AvonLink 99% 99% 98% 95% 97% 2002/03 2003/04 2004/05 2005/06 Target Percentage of services arriving within 2005/06 ‘on-time arrival’ parameter Transwa road coach services on-time running has been consistent and in line with targets. 2002/03 2003/04 2004/05 2005/06 Target Percentage of services arriving within 2005/06 Regional School Bus Services ‘on-time arrival’ parameter This KPI measures school bus timetable reliability The 2005/06 results were better compared to the for rural mainstream services and Special Education target due to the smooth running of the AvonLink School Buses operating in the metropolitan area. throughout the year. 97% 95% 95% 90% 82% d. MerredinLink 95% 89%
2002/03 2003/04 2004/05 2005/06 Target
52% Drop off before school starts and pick 2005/06 up when school finishes
This KPI is calculated using a random sample which Target 2004/05 2005/06 ties in with the inspection programme. The results are 2005/06 Percentage of services arriving within provided in the table below: ‘on-time arrival’ parameter
This is a new service introduced in 2004/05, hence no comparative data. Year Number of Observations observations that were The 2004/05 results were affected by the crossing of for compliance compliant freight trains and mechanical problems with the new with ‘on-time railcars. arrival’ Most of the problems were addressed in 2005/06. 2004/05 517 452 2005/06 1188 56
68 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 The sample error estimates was within + or – 2.8% The sample error estimates were within + or –6% at at 95% confidence level for Regional School Bus 95% confidence level for Transperth Train Services. Services. The improvements are related to clearer standards in 92% 92% 92% 90% new contracts and stronger compliance. 89%
4. Level of Overall Customer Satisfaction
The percentage of patrons who, overall, were satisfied with services, measures the public perception of the 2002/03 2003/04 2004/05 2005/06 Target organisation’s performance in providing a high quality % of respondents either 2005/06 and attractive public transport service. “Very satisfied” or “Satisfied” The measure for Transperth services is derived from an extensive annual survey conducted by independent The 2006 survey results provided by the PSM reflect consultants. The survey referred to as the ‘Passenger an overall reduction in the customer satisfaction Satisfaction Monitor’ (PSM) provides an objective, index. The main drivers for this decline have been unbiased view over time of patrons’ overall satisfaction problems with the on-time performance of trains (see with the system, e.g. safety, on-time running, courtesy also section 3 for service reliability) and customer of staff, service frequency and station amenities. complaints about overcrowding during peak hours. The information is used by Transperth to develop strategies for improving service performance and Transperth Bus Services infrastructure. For the Transperth Bus PSM 2006, a total of 2,850 The independent consultants interview a large bus patrons were surveyed. The overall sample sample of passengers. Interviewers are assigned to comprised: various services and transit station locations over a four week period covering the working week and • Adults aged 18 years or over resident within the weekend. A questionnaire is used by the interviewer Perth Bus Contract region; and respondents are asked to provide a wide range of • Current users of Transperth bus services responses regarding their views on public transport (excluding school students); and performance. This is a face-to-face interview and is • Bus patrons who travel on the bus at least once the most comprehensive public transport survey of per fortnight. passengers/users in Australia. The sample error estimates were within + or – 2% to 3% at 95% confidence level for Transperth Bus Services. Transperth Train Services For the Transperth Train PSM 2006, a total of 799 rail patrons were surveyed. The overall sample comprised: • Adults aged 18 years or over resident within the Perth metropolitan area; • Current users of Transperth train services (excluding school students); and • Patrons who travel on trains at least once per fortnight.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 69 audited key performance indicators 84% 97% 82% 95% 82% 96% 96% 82% 95% 80%
2002/03 2003/04 2004/05 2005/06 Target % of respondents either 2005/06 2002/03 2003/04 2004/05 2005/06 Target “Very satisfied” or “Satisfied” % of respondents either 2005/06 “Very satisfied” or “Satisfied” The 2006 PSM survey results show that customer satisfaction with the Transperth bus system overall The 2006 PSM survey results show that high customer declined marginally (not statistically significant) satisfaction targets have been achieved. compared to 2004/05 and was below the 2005/06 target. Reasons for this reduction identified by the sampled patrons are: Transwa Train and Road Coach Services i. A decline (from 75% to 72%) in the proportion of An independent passenger satisfaction survey is respondents who indicated fares to be excellent/ undertaken for each service - Australind, Prospector, good value. AvonLink, MerredinLink and Road Coaches. (Fares did not increase above CPI). For the Transwa rail and road coach PSM survey for ii. A reduction (from 79% to 76%) in the level of 2006, a total of 874 country services patrons were overall satisfaction with the frequency of buses surveyed via a self-completion survey. during peak times. The sample error estimates were within + or – 3% to (Frequency of services did not reduce). 4% at a 95% confidence level.
Transperth Ferry Services 90% 88% 88% 87% 85% For the Transperth Ferry PSM 2006, a total of 200 ferry patrons were surveyed. The overall sample comprised: • Adults aged 18 years or over; • Patrons who were users of the Transperth Ferry services and used it more than once a fortnight 2002/03 2003/04 2004/05 2005/06 Target 2005/06 for Perth residents and whilst visiting for non- % of respondents either “Very satisfied” or “Satisfied” resident visitors to Perth. School children were excluded from this sample. The sample error estimates were within + or – 10% at Overall passenger satisfaction remains very high at 95% confidence level for Transperth Ferry Services. 88%, with 46% of passengers indicating they were “very satisfied” and a further 42% “satisfied”.
70 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 5. Customer Perception of Safety The results of the 2006 Survey reported in the Transperth PSM report showed that the daytime How safe customers feel on trains and buses and at targets have been met and exceeded. Compared with stations is an important factor in deciding whether to previous years the perceptions of security at night use public transport. The PTA is continuing to invest time have had minimal change. capital funds in security-related infrastructure and has increased its security staff to ensure that customers The report further stated that a high proportion of can see the tangible measures being taken to increase patrons acknowledged that Transperth is perceived to their safety. be taking action to address security concerns.
Customer perception of security is measured through Transperth Bus Services data gathered in the Passenger Satisfaction Monitor (PSM) survey. The passenger satisfaction survey results provide an objective, unbiased view over time 99% 99% 99% 98% 98% 97% 97% of patrons’ perceptions of security and distinguishes 95% 95% 95% between on-train and on-bus and at stations, at night and during the day for the Transperth Train and Bus Services.
Transperth Train Services
At bus stations/ On-board buses interchanges 98% 97% 96% 96% 96% 96% 95% 95% 95%
90% Customer perception of security Daytime 2002/03 2003/04 2004/05 2005/06 Target 2005/06 86% 86% 85% Stations On-board trains 84% 78% 68% 68% 67% Customer perception of security 66% 66% Daytime 2002/03 2003/04 2004/05 2005/06 Target 2005/06 At bus stations/ On-board buses interchanges 80% 79% Customer perception of security 75% 74% 73% 70% Night-time 63% 62% 62%
59% 2002/03 2003/04 2004/05 2005/06 Target 2005/06
The PSM 2006 showed that customer perceptions Stations On-board trains of safety on-board buses and at bus stations and Customer perception of security interchanges during daytime, while remaining high, Night-time were generally slightly below target. 2002/03 2003/04 2004/05 2005/06 Target 2005/06
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 71 audited key performance indicators
The night-time result for bus stations/interchanges The results below do not include the comparatives was also slightly below target. for 2002/03 and 2003/04 as the data would not be comparable due to the change in reporting However, there was a significant reduction in the definitions. perception of safety on-board buses at night-time when 78% of respondents indicated they “always Category A Occurrences (serious injury, death, or or usually feel safe” at this time compared to 85% significant damage) in 2005. In 2005, 33% of respondents indicated they “always” feel safe, whereas this proportion fell to 23%
in 2006. 14.00 Transperth has taken a number of measures to address the security concerns. Details of the measures are
included under passenger safety in the Transperth 5.00 section of this report (see page 15 and 18). 2.08 0.98 0.56 0.24
Category A occurrences Category A occurrences 6. Level of Notifiable Occurrences per million passenger per million train boarding kilometres Rail Safety Notifiable occurrences-rail safety Railway safety incidents are recorded and notified to the Office of Rail Safety. These incidents are termed 2004/05 2005/06 Upper control limit notifiable occurrences and are defined in the Rail The upper control limit represents the limit beyond which Safety Regulations 1999 as Category A (serious injury, management intervention would be appropriate. death, or significant damage) or Category B (incidents that may have the potential to cause a serious The results for the Category A occurrences continue accident) and Australian Standard “Railway Safety to be at a low level as a result of increased risk Management” 4292 - 2006. Notifiable occurrences management initiatives and controls. are a legislative requirement under the Rail Safety Act 1998 for the accredited owner and operator of a rail Category B Occurrences (incidents that may have system and therefore form part of the organisation’s the potential to cause a serious accident) safety management system. These do not cover bus operations.
The performance measure for Category A and 67.60
B occurrences is expressed as the number of 60.00 52.12 occurrences per million passenger boardings and per million train kilometres. A low level of incidents indicates that sound safety procedures and controls 18.27 14.00 exist and are operating effectively throughout the rail 12.76 system. Category B occurrences Category B occurrences Under direction of General Manager Rail Safety, per million passenger per million train Department for Planning and Infrastructure, the PTA boarding kilometres adopted national reporting definitions for notifiable Notifiable occurrences-rail safety occurrences effective 1 January 2005. In January 2006 2004/05 2005/06 Upper control limit the General Manager issued further instructions to The upper control limit represents the limit beyond which implement changes to AS 4292 including definitions management intervention would be appropriate. for notifiable occurrences.
72 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 The results for 2005/06 were above the upper EFFICIENCY INDICATORS control limit and can be attributed to the high level of Cost per Passenger Kilometre new project work being carried out on the operating railway. The cost per passenger kilometre measures the cost efficiency of providing passenger services, expressed as the cost of carrying one passenger one kilometre. Regional School Bus Services Safety Passenger kilometres are currently based on the Accidents attributable to all causes are notified zonal distribution of passenger trips and an assumed to and recorded by the School Bus Team Leader average trip length for each zone. Ideally, the average Vehicle Inspector. The performance measure for the passenger trip length on each mode should be notifiable occurrences are expressed as the number determined more accurately, through a survey, and of notifiable occurrences (accidents) reported during multiplied by the number of trips on that mode to the school year. A low level of incidents indicates that calculate passenger kilometres. sound safety procedures and controls exist and are being adhered to throughout the regional school bus The indicator measures the cost efficiency of the fleet. services, i.e. the trend in the cost of carrying one passenger over one kilometre. A declining trend indicates that the resources used to provide the
19 services are being utilised in a cost efficient manner. 16 Transperth Train Services 12 8 6 $1.09 $1.05 $0.91 2002/03 2003/04 2004/05 2005/06 Target School bus services notifiable 2005/06 $0.70 occurrences (accidents) reported each school year $0.50
There were 16 ‘on-road’ recorded school bus 2002/03 2003/04 2004/05 2005/06 Target accidents in 2005/06 comprising 11 minor and 5 Average cost per passenger kilometre 2005/06 major accidents. The 2005/06 average cost was below the target. This Approximately 81% of the accident cases occurred was due to: through no fault of the school bus driver. a. An increase in passenger kilometres resulting from As part of an ongoing campaign to educate school bus higher patronage; and contractors about the relative risks associated with b. Lower than budgeted borrowing costs. accidents, measures such as the rollout of the Safety Management plan is an effective means of improving Compared to prior years the 2005/06 actuals are safety. higher due to increased capital charges which include borrowing costs, depreciation and capital user charges This action is expected to assist in lowering the as a result of the expanded train network. number of notifiable occurrences.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 73 audited key performance indicators
Transperth Bus Services Transwa Rail Services $0.67 $0.69 $0.36 $0.63 $0.32 $0.61 $0.32 $0.31 $0.51 $0.25
2002/03 2003/04 2004/05 2005/06 Target 2002/03 2003/04 2004/05 2005/06 Target 2005/06 Average cost per passenger kilometre Average cost per passenger kilometre 2005/06
The 2005/06 cost was higher than the target due to cost pressures. Total expenditure increased 11.7% The 2005/06 results are above the target due to: while passenger kilometres recorded an increase of only 2.1%. . Change in internal operating cost allocation between Transwa rail and road services which The increase in total expenditure was due to: was finalised after targets were set; and . Higher contract costs due to fuel and wages . Lower passenger kilometres compared to the increases; estimate due to mechanical problems with the . Increased security costs for security patrols and Prospector railcars. closed circuit television systems; 3. Increased marketing costs following public Transwa Road Coach Services awareness campaigns in particular security e.g. “See Something Say Something”, SmartRider; and 4. Costs incurred in relation to connection of $0.22
natural gas supplies at various depots. $0.20 $0.19 $0.19
Transperth Ferry Services $0.15 $1.62 $1.59 $1.48 $1.49 2002/03 2003/04 2004/05 2005/06 Target Average cost per passenger kilometre 2005/06 $1.17
2002/03 2003/04 2004/05 2005/06 Target Average cost per passenger kilometre 2005/06
74 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Regional School Bus Services Under the terms and conditions of the Railway The cost efficiency measure for school bus services Infrastructure Lease, an independent inspection of the measures the cost of funding student place kilometres railway infrastructure is carried out every five years. provided to meet student requirements. The first independent inspection was completed in June 2005. The results of this inspection did not indicate any cause for concern and that the rail corridor and $81.96 $79.12
$78.55 infrastructure is being satisfactorily maintained. $69.84
$61.71 COST EFFICIENCY The cost efficiency for the management of the long term lease of the rail freight infrastructure to WestNet Rail, is monitored using the total cost of managing the 2002/03 2003/04 2004/05 2005/06 Target rail corridor and residual freight issues. Cost per 1000 student place kilometre 2005/06
The results for 2005/06 did not meet the target due to an increase in financial commitments resulting from $57,982 the actual number of contracted service days being $54,568 $51,544 $52,912
higher than the budget estimate. $48,311
Outcome: Protection of the long term functionality of the rail corridor and railway infrastructure 2002/03 2003/04 2004/05 2005/06 Target Cost of managing rail corridor 2005/06 EFFECTIVENESS INDICATOR and residual freight issues management 000s The most significant issue for this outcome is the management of the long term lease of the rail freight Compared to 2004/05 the total costs in 2005/06 have infrastructure to WestNet Rail Pty Ltd. dropped as a result of the settlement of a claim of $4.55M related to a disputed contract in 2004/05. WestNet Rail manages and operates the rail freight infrastructure under the terms of the Railway Infrastructure Lease. Under the Lease, WestNet Rail is the ‘accredited owner’ of the infrastructure as defined in the Rail Safety Act 1998. WestNet Rail’s holding company Australian Railroad Group was acquired during the year by a Babcock and Brown Company. WestNet Rail retains all of its legal responsibilities under the lease agreement.
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76 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 financial statements financial statements index
Income Statement 80 Balance Sheet 81 Statement of Changes in Equity 82 Cash Flow Statement 83 NOTES TO THE FINANCIAL STATEMENTS 84 1 First time adoption of Australian equivalents to International Financial Reporting Standards 84 2 Summary of significant accounting policies 84 3 Judgement made by management in applying accounting policies 92 4 Key sources of estimation uncertainty 92 5 Employee benefit expenses 92 6 Supplies and services 92 7 Depreciation and amortisation expense 92 8 Finance costs 93 9 Grants and subsidies expense 93 10 Capital user charge 93 11 Other expenses 93 12 User charges and fees 93 13 Land rationalisation lease revenue 93 14 Operating lease revenue 94 15 Grants and subsidies revenue 94 16 Interest revenue 94 17 Other revenue 94 18 Net gain/(loss) on disposal of non-current assets 94 19 Income from State Government 94 20 Restricted cash and cash equivalents 95 21 Inventories 95 22 Receivables 95 23 Amounts receivable for services 95 24 Other current assets 95 25 Infrastructure, property, plant, equipment and vehicles 96 26 Intangible assets 97 27 Impairment of assets 97 28 Payables 97 29 Borrowings 98 30 Provisions 98 31 Other current liabilities 99 32 Derivatives 99 33 Deferred income – operating leases 100 34 Equity 101 35 Notes to the Cash Flow Statement 101 36 Commitments 102 37 Contingent liabilities and contingent assets 103 38 Remuneration of members of the Accountable Authority and senior officers 104 39 Financial instruments 104 40 Supplementary financial information 106 41 Events occurring after the balance sheet date 107 42 Explanatory Statement 107 43 Schedule of income and expenses by service 110 44 Remuneration of auditor 111 45 Reconciliations explaining the transition to Australian equivalents to International Financial Reporting Standards (AIFRS) 111
78 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 certification of financial statements For the year ended 30 June 2006
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 79 income statement For the year ended 30 June 2006
NOTES 2006 2005 $000 $000 COST OF SERVICES Expenses Employee benefit expense 5 68,874 60,910 Supplies and services 6 98,828 92,841 Depreciation and amortisation expense 7 92,477 69,484 Finance costs 8 105,903 85,492 Grants and subsidies 9 243,341 220,274 Capital user charge 10 65,052 44,010 Energy and fuel 8,128 7,959 Land rationalisation expense 6,223 2,903 Loss on disposal of non-current assets 18 83 0 Other expenses 11 10,933 ,339 Total cost of services 699,842 595,212
Income Revenue User charges and fees 12 90,258 85,175 Land rationalisation lease revenue 13 83 83 Operating lease revenue 14 19,364 8,947 Grants and subsidies 15 17,02 0,639 Interest revenue 16 1,084 1,342 Other revenue 17 20,863 6,400 Total revenue 148,673 132,586
Gains Gain on disposal of non-current assets 18 0 22,777
Total income other than income from State Government 148,673 155,363
NET COST OF SERVICES 551,169 439,849
INCOME FROM STATE GOVERNMENT Service appropriation 19 559,824 475,370 Resources received free of charge 19 41 1,618 Total income from State Government 559,865 476,988
SURPLUS/(DEFICIT) FOR THE PERIOD 8,696 37,139
The Income Statement should be read in conjunction with the accompanying notes.
80 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 balance sheet As at 30 June 2006
NOTES 2006 2005 $000 $000 ASSETS Current Assets Cash and cash equivalents 35 1,146 3,761 Restricted cash and cash equivalents 20 694 932 Inventories 21 7,646 7,468 Receivables 22 12,584 20,423 Other current assets 24 0 28,934 Total Current Assets 22,070 61,518
Non-Current Assets Amounts receivable for services 23 224,040 44,557 Infrastructure, property, plant, equipment and vehicles 25 2,847,108 2,359,177 Intangible assets 26 735 754 Total Non-Current Assets 3,071,883 2,504,488
TOTAL ASSETS 3,093,953 2,566,006
LIABILITIES Current Liabilities Payables 28 98,877 07,059 Borrowings 29 ,122,678 382,723 Provisions 30 17,389 6,748 Other current liabilities 31 753 29,944 Derivatives 32 996 0 Deferred income operating lease 33 12,827 3,591 Total Current Liabilities 1,253,520 550,065
Non-Current Liabilities Borrowings 29 598,794 ,203,692 Provisions 30 4,139 3,124 Deferred income operating lease 33 202,366 215,193 Total Non-Current Liabilities 805,299 1,422,009
Total Liabilities 2,058,819 1,972,074
NET ASSETS 1,035,134 593,932
EQUITY Contributed equity 34 939,871 530,424 Reserves 34 26,913 0 Accumulated surplus/(deficit) 34 68,350 63,508 TOTAL EQUITY 1,035,134 593,932
The Balance Sheet should be read in conjunction with the accompanying notes.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 81 statement of changes in equity For the year ended 30 June 2006
NOTES 2006 2005 $000 $000
Balance of equity at start of period 593,932 510,127
CONTRIBUTED EQUITY Balance at start of period 530,424 483,758 Capital contribution 424,947 71,515 Distributions to owners (15,500) (24,849) Balance at end of period 34 939,871 530,424
RESERVES Asset Revaluation Reserve Balance at start of the period 0 0 Revaluation of land 26,913 0 Balance at end of the period 34 26,913 0
ACCUMULATED SURPLUS (RETAINED EARNINGS) Balance at start of period 63,508 26,369 Net adjustment on transition to AIFRS (3,854) 0 Restated balance at start of period 59,654 26,369 Surplus/(deficit) for the period 8,696 37,139 Balance at end of period 34 68,350 63,508
Balance of equity at end of period 1,035,134 593,932
Total income and expense for the period (a) 35,609 37,139
(a) The aggregate net amount attributable to each category of equity is: surplus $8,696k plus gains from asset revaluation reserve $26,913k (2005: surplus $37,139k).
The Statement of Changes in Equity should be read in conjunction with the accompanying notes
82 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 cash flow statement For the year ended 30 June 2006
NOTES 2006 2005 $000 $000
CASH FLOWS FROM STATE GOVERNMENT Service appropriation 480,341 406,388 Capital contributions 424,947 71,515 Net cash provided by State Government 905,288 477,903
Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee benefits (65,831) (58,123) Supplies and services (114,990) (108,197) Finance costs (101,388) (76,781) Grants and subsidies (234,193) (219,009) Capital user charge (64,682) (44,010) GST payments on purchases (92,173) (84,905) Other payments (6,917) (9,721)
Receipts Contribution other Government Agencies 15,458 11,276 Transwa 10,000 9,662 Transperth train operations 26,851 25,538 Transperth buses 60,573 56,280 Interest received 833 1,367 GST receipts on sales 9,806 10,512 GST receipts from taxation authority 79,665 72,074 Other receipts 10,362 9,847 Net cash used in operating activities 35 (466,626) (404,190)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of non-current physical assets 299 1,015 Purchase of non-current physical assets PTA (93,344) (147,602) Purchase of non-current physical assets New MetroRail (483,907) (389,077) Net cash used in investing activities (576,952) (535,664)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 631,361 553,524 Repayment of borrowings (488,175) (88,449) Other repayments (7,749) (9,248) Net cash provided by financing activities 135,437 455,827
Net increase/(decrease) in cash held (2,853) (6,124) Cash and cash equivalents at the beginning of the period 4,693 10,817 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 35 1,840 4,693
The Cash Flow Statement should be read in conjunction with the accompanying notes.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 83 notes to the financial statements For the year ended 30 June 2006
1 First time adoption of Australian equivalents to International Financial Reporting Standards
This is the Public Transport Authority of Western Australia’s (PTA) first published financial statements prepared under Australian equivalents to International Financial Reporting Standards (AIFRS). Accounting Standard AASB 1 ‘First time Adoption of Australian Equivalents to International Financial Reporting Standards’ has been applied in preparing these financial statements. Until 30 June 2005, the financial statements of PTA have been prepared under the previous Australian Generally Accepted Accounting Principles (AGAAP). The Australian Accounting Standards Board (AASB) adopted the Standards of the International Accounting Standards Board (IASB) for application to reporting periods beginning on or after 1 January 2005 by issuing AIFRS which comprise a Framework for the Preparation and Presentation of Financial Statements, Accounting Standards and the Urgent Issue Group (UIG) Interpretations. In accordance with the option provided by AASB 1 paragraph 36A and exercised by Treasurer’s Instruction (TI) 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’, financial instrument information prepared under AASB 132 and AASB 139 will apply from 1 July 2005 and consequently comparative information for financial instruments is presented on the previous AGAAP basis. All other comparative information has been prepared under the AIFRS basis. Early adoption of standards The PTA cannot early adopt an Australian Accounting Standard or UIG Interpretation unless specifically permitted by TI11 01 ‘Application of Australian Accounting Standards and Other Pronouncements’. This TI requires the early adoption of revised AASB 119 ‘Employee Benefits’ as issued in December 2004, AASB 2004-3 ‘Amendments to Australian Accounting Standards, AASB 2005-3 ‘Amendments to Australian Accounting Standards [AASB 119]’, AASB 2005-4 ‘Amendments to Australian Accounting Standard [AASB 139, AASB 132, AASB 1, AASB 1023 & AASB 1038]’ and AASB 2005-6 ‘Amendments to Australian Accounting Standards [AASB 3]’ to the annual reporting period beginning 1 July 2005. AASB 2005-4 amends AASB 139 ‘Financial Instruments: Recognition and Measurement’ so that the ability to designate financial assets and financial liabilities at fair value is restricted. Reconciliations explaining the transition to AIFRS as at 1 July 2004 and 30 June 2005 are provided at note 45 ‘Reconciliations explaining the transition to AIFRS’. 2 Summary of significant accounting policies a) General Statement The financial statements constitute a general purpose financial report which has been prepared in accordance withthe Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board as applied by the Treasurer’s Instructions. Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financial statements and take precedence over the Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board. Where modification is required and has a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements. b) Basis of Preparation The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, modified by the revaluation of land, buildings and infrastructure which have been measured at fair value. The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated. The financial statements are presented in Australian dollars rounded to the nearest thousand dollars ($’000). The judgements that have been made in the process of applying the PTA’s accounting policies that have the most significant effect on the amounts recognised in the financial statements are disclosed in note 3 ‘Judgements made by management in applying accounting policies’. The key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed at note 4 ‘Key sources of estimation uncertainty’.
84 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 c) Reporting Entity The Public Transport Authority of Western Australia is the reporting entity and there are no other related or affiliated bodies. d) Contributed Equity Under UIG 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ transfers in the nature of equity contributions must be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions in the financial statements. Capital contributions (appropriations) are designated as contributions by owners by TI 955 ‘Contributions by Owners made to wholly Owned Public Sector Entities’ and have been credited directly to Contributed Equity. Transfer of net assets to/from other agencies are designated as contributions by owners where the transfers are non- discretionary and non-reciprocal (See note 34 ‘Equity’). e) Income Revenue Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows: Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership control transfer to the purchaser. Rendering of services Revenue is recognised on delivery of the service or by reference to the stage of completion except for the following: i) Cash fares collected by contractors delivering bus services to PTA are accounted for at the time the contract for services invoice is approved for payment. ii) Fares for MultiRider sales are accounted on a regular basis (at least weekly) when cash is received from sales agents. Unused MultiRider travel entitlements are not recognised in the financial statements. Interest Revenue is recognised as the interest accrues. Service appropriations Service appropriations are recognised as revenues at nominal value in the period in which the Public Transport Authority of Western Australia (PTA) gains control of the appropriated funds, which is at the time those funds are deposited into the PTA’s bank account or credited to the holding account held at the Department of Treasury and Finance. Grants, donations, gifts and other non-reciprocal contributions Revenue is recognised at fair value when PTA obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt. Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. Lease income from operating leases is recognised as income on a straight-line basis over the term of the lease (see Note 13 and 33), with the exception of the 49 years lease of the Freight Network Infrastructure which is based on a net present value annuity schedule. Gains Gains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non current assets and some revaluations of non current assets. f) Borrowing Costs All borrowing costs are recognised as expenses in the period in which they are incurred (see Note 3). g) Infrastructure, Property, Plant and Equipment and Vehicles Capitalisation/Expensing of assets Items of property, plant and equipment and infrastructure costing over $5,000 are recognised as assets and the cost of utilising
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 85 notes to the financial statements For the year ended 30 June 2006
assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Income Statement (other than where they form part of a group of similar items which are significant in total). Initial recognition and measurement All items of property, plant and equipment and infrastructure are initially recognised at costs. For items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition. Subsequent measurement After recognition as an asset, the revaluation model is used for the measurement of land, buildings and infrastructure and the cost model for all other property, plant and equipment. Land, buildings and infrastructure are carried at fair value less accumulated depreciation on buildings and infrastructure and accumulated impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Where market evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. Where market evidence is not available, the fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings is dependent on using the depreciated replacement cost, the gross carrying amount and the accumulated depreciation are restated proportionately. The revaluation of land controlled by the PTA including metropolitan and regional corridor land, not subject to commercial lease has been provided independently by the Department of Land and Information (Valuation Services). Fair value was determined for all other assets as at 1 July 2003, based on valuation methods to suit specific asset types. Additions since 1 July 2003 have been added to the fair value based on actual cost. The revaluation of land and buildings which are commercially leased were independently valued based on the capitalised value of current leases. Rollingstock, permanent way, plant, equipment and vehicles were valued by PTA’s engineering and management professionals based on the written down value of the current cost to replace the asset with a modern equivalent asset capable of delivering the same service potential. The written down value was determined by calculating the unexpired component of each asset’s total useful life. The Freight Network Infrastructure, subject to a 49 year prepaid lease was valued by an independent expert based on the net present value of the unearned lease income. Improvements to the Freight Network Infrastructure, funded by the PTA, have been added to the fair value based on actual cost. Infrastructure, property, plant and equipment is revalued, at least once every five years, to its fair value having regard to its highest and best use. Construction in progress is recognised at cost. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner which reflects the consumption of their future economic benefits. Land is not depreciated. Depreciation on other assets is calculated on the straight line basis, using rates which are reviewed annually. Expected useful lives for each class of depreciable asset are:
86 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Class of asset Useful Life Buildings 30 to 50 years Rollingstock 30 years Infrastructure 15 to 75 years Plant and equipment 10 to 15 years Buses 7 to 18 years Motor vehicles 5 to 10 years Vessels 10 years Office equipment 3 to 5 years Software 3 years
Assets under construction are not depreciated until they are available for use. h) Intangible Assets Capitalisation/Expensing of assets Acquisitions of intangible assets costing over $5,000 are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below this threshold are immediately expensed directly to the Income Statement. All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition. The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. The carrying value of intangible assets is reviewed for impairment annually when the asset is not yet in use or more frequently when an indicator of impairment arises during the reporting year indicating that the carrying value may not be recoverable. Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life) on the straight line basis using rates which are reviewed annually. All intangible assets controlled by the PTA have a finite useful life and zero residual value. i) Computer software Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset and are capitalised and amortised on a straight line basis over the periods of the expected benefit, which varies from 3 to 5 years. Software costing less than $5,000 is expensed in the year of acquisition. ii) Web site costs Costs in relation to web sites controlled by the PTA are charged as expenses in the period in which they are incurred. i) Impairment of Assets Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at each reporting date. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is written down to the recoverable amount and an impairment loss is recognised. As the PTA is a not for profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost. The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated or where the replacement cost is falling. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/ amortisation reflects the level of consumption or expiration of asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs. The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market evidence. Where fair value is determined by reference to the depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairments at each reporting date. Refer to note 27 ‘Impairment of Assets’ for the outcome of impairment reviews and testing.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 87 notes to the financial statements For the year ended 30 June 2006
j) Leases The PTA’s rights and obligations under finance leases, which are leases that effectively transfer to the PTA substantially the entire risks and benefits incident to ownership of the leased items, are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments determined at the inception of the lease. The assets are disclosed as plant, equipment and vehicles under lease, and are depreciated to the Income Statement over the period during which PTA is expected to benefit from use of the leased assets. Minimum lease payments are allocated between finance costs and reduction of the lease liability, according to the interest rate implicit in the lease. Finance lease liabilities are allocated between current and non-current components. The principal component of lease payments due on or before the end of the succeeding year is disclosed as a current liability, and the remainder of the lease liability is disclosed as a non-current liability. The PTA has entered into a number of operating lease arrangements where the lessor effectively retains the entire risks and benefits incident to ownership of the items held under the operating leases. Equal instalments of the lease payments are charged to the Income Statement over the lease term as this is representative of the pattern of benefits to be derived from the leased assets. k) Prepaid Lease Revenue The sale of the Westrail Freight Business on 17 December 2000 included an operating lease of the freight network infrastructure for 49 years between The Western Australian Government Railways Commission (WAGR) – now Public Transport Authority (PTA) and Westnet Rail Pty. The lease rentals were fully prepaid on 17 December 2000, and credited to deferred operating lease revenue. The annual rental from this lease is recognised as revenue, together with an associated interest expense, in accordance with net present value principles. l) Financial Instruments The PTA has three categories of financial instruments: • Loans and receivables (includes cash and cash equivalents, receivables); • Non-trading financial liabilities (includes finance leases, payables); and • Financial asset at fair value through profit or loss. Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently restated to their fair value at each reporting date. Changes in fair value are recognised through the Income Statement. m) Cash and Cash Equivalents For the purpose of the Cash Flow Statement, cash and cash equivalents (and restricted cash and cash equivalents) assets comprise of cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value, and bank overdrafts. n) Accrued Salaries Accrued salaries (refer to note 28 ‘Payables’) represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a few days of the financial year end. The PTA considers the carrying amount approximates net fair value. o) Amounts Receivable for Services (Holding Account) The PTA receives funding on an accrual basis that recognises the full annual cash and non-cash cost of services. The appropriations are paid partly in cash and partly as an asset (Holding Account receivable) that is accessible on the emergence of the cash funding requirement to cover items such as leave entitlements and asset replacement. See also note 19 ‘Income from State Government’ and note 23 ‘Amounts receivable for services’. p) Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class of inventory. Inventory recorded using the inventory control system is valued at the weighted average cost whereas the balance is valued on a first in first out basis.
88 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Inventories not held for resale are valued at cost unless they are no longer required, in which case they are valued at net realisable value. See note 21 ‘Inventories’. q) Receivables Receivables are recognised and carried at original invoice amount less any provision for uncollectible amounts (impairment). The collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised when there is objective evidence that the PTA will not be able to collect the debts. The carrying value is equivalent to fair value as it is due for settlement within 30 days. See note 2(l) ‘Financial Instruments’ and note 22 ‘Receivables’. r) Payables Payables, including accruals not yet billed, are recognised when the PTA becomes obliged to make future payments as a result of a purchase of assets or services. The carrying value is equivalent to fair value as it is due for settlement within 30 days. See note 2(l) ‘Financial Instruments’ and note 28 ‘Payables’. s) Borrowings All loans are initially recorded at cost, being the fair value of the net proceeds received. Subsequent measurement is at amortised cost using the effective interest rate method. See note 2(l) ‘Financial Instruments’ and note 29 ‘Borrowings’. t) Provisions Provisions are liabilities of uncertain timing and amount and are recognised where there is a present legal, equitable or constructive obligation as a result of a past event and when the outflow of economic benefits is probable and can be measured reliably. Provisions are reviewed at each balance date. See note 30 ‘Provisions’ (i) Provisions - Employee Benefits
Annual Leave and Long Service Leave The liability for annual and long service leave expected to be settled within 12 months after the end of the reporting date is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave expected to be settled more than 12 months after the end of the reporting date is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilities are in respect of services provided by employees up to the reporting date. When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity that match, as closely as possible, to the estimated future cash outflows.
All annual and unconditional long service leave provisions are classified as current liabilities as the PTA does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Sick Leave Liabilities for sick leave are recognised when it is probable that sick leave paid in the future will be greater than the entitlement that will accrue in the future. Past history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised in the income statement for this leave as it is taken. Superannuation The Government Employees Superannuation Board (GESB) administers the following superannuation schemes.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 89 notes to the financial statements For the year ended 30 June 2006
Staff may contribute to the Pension Scheme, a defined benefit pension scheme now closed to new members, or to the Gold State Superannuation (GSS) Scheme, a defined benefit lump sum scheme now also closed to new members. The PTA has no liabilities under the Pension or the GSS Schemes. The liabilities for the unfunded Pension Scheme and the unfunded GSS Scheme transfer benefits due to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS Scheme obligations are funded by concurrent contributions made by the PTA to the GESB. The concurrently funded part of the GSS Scheme is a defined contribution scheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS Scheme obligations. Employees who are not members of either the Pension or the GSS Schemes become non-contributory members of the West State Superannuation (WSS) Scheme. The PTA makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. The WSS Scheme is a defined contribution scheme as these contributions extinguish all liabilities in respect of the WSS Scheme. See also note 2(u) ‘Superannuation expense’. The GESB makes all benefit payments in respect of the Pension and GSS schemes and is recouped by the Treasurer for the employer’s share. (ii) Provisions - Other Employment On-Costs Employment on-costs, including payroll tax and workers’ compensation insurance, are not employee benefits and are recognised as separate liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are not included as part of the PTA’s ‘Employee benefits expense’ and the related liability is included in Employment on-costs provision (see notes 5 and 30). u) Superannuation Expense The following elements are included in calculating the superannuation expense in the Income Statement: i) Defined benefit plans – change in the unfunded employers’ liability (i.e. current service cost and actuarial gains and losses) assumed by the Treasurer in respect of current employees who are members of the Pension Scheme and current employees who accrued a benefit on transfer from that Scheme to the Gold State Superannuation Scheme (GSS); and ii) Defined contribution plans – employer contributions paid to the GSS and the West State Superannuation Scheme (WSS). v) Resources Received Free of Charge or for Nominal Cost Resources received free of charge or for nominal cost which can be reliably measured are recognised as revenues and as assets or expenses as appropriate at fair value. w) Comparative Figures Comparative figures have been restated on the AIFRS basis except for financial instruments which have been prepared under the previous AGAAP Australian Accounting Standard AAS 33. The transition date to AIFRS for financial instruments is 1 July 2005 in accordance with the exemption allowed under AASB 1, paragraph 36A and Treasurer’s Instruction 1101. x) Derivatives The Public Transport Authority has exercised the exemption available under AASB 1.36A and as per the Treasurer’s Instruction 1101 to apply AASB 132 and AASB 139 from 1 July 2005. The PTA has applied previous AGAAP for the comparative period ending 30 June 2005 (see note 2w) for comparative information. Forward foreign exchange contracts from 1 July 2004 and 30 June 2005 The PTA has applied previous AGAAP for the comparative period ending 30 June 2005. Under the previous AGAAP gains or losses from entering into a contract intended to hedge the purchase of goods together with the subsequent gains or losses resulting from the restatement of those contracts by reference to movements in spot exchange rates were deferred in the balance sheet from the inception of the hedging transaction up to the date of the purchase and included in the subsequent purchase price of the assets. Adjustments on transition date: 1 July 2005 At the date of transition, 1 July 2005, in line with AASB 132 and AASB 139 the foreign exchange contracts were measured on the fair value basis. The changes in the fair value were taken to retained earnings.
90 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 For future information concerning adjustments on transition date reference should be made to: Note 32 ‘Derivatives’, Note 39 ‘Financial Instruments’ and Note 34 ‘Equity’. From 1 July 2005 The foreign exchange contracts are initially recognised at fair value on the date the contract is entered into and are subsequently restated to their fair value at each reporting date. Changes in the fair value of the contracts are recognised in the income statement and are included in the income or other expenses. At balance date the amount receivable and payable under the foreign exchange contracts are disclosed on a net basis representing the future cash flow required to settle the contracts. y) Foreign Currency Translation Transactions denominated in a foreign currency are translated at the rates in existence at the dates of the transactions. Foreign currency receivables and payables at reporting date are translated at exchange rates current at reporting date. Exchange gains and losses are brought to account in determining the result for the year. z) Future impact of Australian Accounting Standards not yet operative The PTA cannot early adopt an Australian Accounting Standard or UIG Interpretation unless specifically permitted by TI11 01 ‘Application of Australian Accounting Standards and Other Pronouncements’. As referred to in Note 1, TI 1101 has only mandated the early adoption of revised AASB 119, AASB 2004-3, AASB 2005-3, AASB 2005-4 and AASB 2005-6. Consequently, the PTA has not applied the following Australian Accounting Standards and UIG Interpretations that have been issued but are not yet effective. These will be applied from their application date: a) AASB 7 ‘Financial Instruments: Disclosures’ (including consequential amendments in AASB 2005-10 ‘Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]’). This Standard requires new disclosures in relation to financial instruments. The Standard is required to be applied to annual reporting periods beginning on or after 1 January 2007. The Standard is considered to result in increased disclosures of an entity’s risks, enhanced disclosure about components of a financial position and performance, and changes to the way of presenting financial statements, but otherwise there is no financial impact. b) AASB 2005-9 ‘Amendments to Australian Accounting Standards [AASB 4, AASB 1023, AASB 139 & AASB 132]’ (Financial guarantee contracts). The amendment deals with the treatment of financial guarantee contracts, credit “insurance contracts”, letters of credit or credit derivative default contracts as either an “insurance contract” under AASB 4 “Insurance Contracts” or as a “financial guarantee contract” under AASB 139 ‘Financial Instruments: Recognition and Measurement’. The PTA does not undertake these types of transactions resulting in no financial impact when the Standard is first applied. The Standard is required to be applied to annual reporting periods beginning on or after 1 January 2006. c) UIG Interpretation 4 ‘Determining whether an Arrangement Contains a Lease’. This Interpretation deals with arrangements that comprise a transaction or a series of linked transactions that may not involve a legal form of a lease but by their nature are deemed to be leases for the purposes of applying AASB 117 ‘Leases’. At reporting date, the PTA has not entered into any arrangements as specified in the Interpretation resulting in no impact when the Interpretation is first applied. The Interpretation is required to be applied to annual reporting periods beginning on or after 1 January 2006. The following amendments are not applicable to the PTA as they will have no impact: i) 2005-1 AASB 139: (Cash flow hedge accounting of forecast intragroup transactions). ii) 2005-5 ‘Amendments to Australian Accounting Standards [AASB 1 & AASB 139]’. iii) 2006-1 AASB 121 (Net investment in foreign operations). iv) UIG 5 ‘Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds’. v) UIG 6 ‘Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment’. vi) UIG 7 ‘Applying the Restatement Approach under AASB 129 Financial Reporting in Hyperinflationary Economies’. vii) UIG 8 ‘Scope of AASB 2’. viii) UIG 9 ‘Reassessment of Embedded Derivatives’.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 91 notes to the financial statements For the year ended 30 June 2006
3 Judgement made by management in applying accounting policies The judgements that have been made in the process of applying accounting policies that have the most significant effect on the amounts recognised in the financial statements include: - The PTA has decided to expense all borrowing costs associated with the construction of major projects such as New MetroRail as allowed by the alternative accounting treatment under AASB 123 ‘Borrowing Costs’.
4 Key sources of estimation uncertainty The key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: Discount rates used in estimating provisions The PTA is using market yields on national government bonds with terms to maturity that match, as closely as possible, to the estimated future cash outflows to discount the estimated value of the provisions for annual and long service leave. Fluctuations in the government bond yields may impact the provision for annual and long service leave. Estimating useful life of key assets The useful lives are estimated having regard to such factors as asset maintenance, rate of technical and commercial obsolescence, asset usage. The useful lives of key assets are reviewed annually. The useful life of the Freight Network Infrastructure is based on the term of the lease.
2006 2005 $000 $000 5 Employee benefit expenses Wages and salaries 56,407 49,475 Superannuation - defined contribution plans 5,541 5,132 Long service leave (i) 1,855 1,685 Annual leave (i) 5,071 4,618 68,874 60,910
(i) Includes a superannuation contribution component 6 Supplies and services Consultants and contractors 61,762 58,419 Communications 1,618 1,265 Consumables 5,648 5,342 Travel 7,047 5,872 Materials 12,506 2,602 Other 10,247 9,341 98,828 92,841
7 Depreciation and amortisation expense Depreciation Buildings 3,306 1,670 Freight Network Infrastructure 6,380 5,431 Rollingstock 13,165 9,561 Railway infrastructure 41,573 25,059 Plant, equipment and motor vehicles 1,244 1,557 Bus infrastructure 4,215 4,113 Vessels 112 176 Buses 18,248 7,702 Total depreciation 88,243 65,269
92 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 2006 2005 $000 $000 Amortisation Intangible assets 640 621 Leased railcars 3,594 3,594 Total amortisation 4,234 4,215
Total depreciation and amortisation 92,477 69,484
8 Finance costs Western Australian Treasury Corporation loans 99,748 80,421 Commonwealth loans 269 291 Financial lease finance charges 30 75 Interest expense on prepaid Freight Network Infrastructure operating lease 5,856 4,628 Other interest 0 77 105,903 85,492 9 Grants and subsidies expense Bus operators 159,918 43,241 Ferry services 558 514 Regional bus services 11,038 0,762 Student fare concessions 3,191 2,837 Grant to local government 1,165 0 School bus services 67,471 62,920 243,341 220,274
10 Capital user charge 65,052 44,010
A capital user charge rate of 8% (2004/05: 8%) has been set by the Government for 2005/06 and represents the opportunity cost of capital invested in the net assets of the PTA used in the provision of services. The charge is calculated on the net assets adjusted to take account of exempt assets. Payment was made to the Department of Treasury and Finance on a quarterly basis.
11 Other expenses Employment on-costs (i) 346 1,166 Payroll tax 3,741 3,742 Workers’ compensation 3,156 4,813 Notional charge for land valuation provided by Department of Land Information 41 1,618 Contribution to Main Roads for the South Street bus lane 3,000 0 Contribution to City of Joondalup for car parking 649 0 10,933 11,339
(i) Includes workers’ compensation insurance and payroll tax relating to annual and long service leave. The corresponding liability is included at note 30 ‘Provisions’. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.
12 User charges and fees Transperth system revenue 80,997 76,760 Country passenger operations revenue 9,261 8,415 90,258 85,175
13 Land rationalisation lease revenue
Rental income from land rationalisation 83 83
A 99 year operating lease for 118 grain receival sites was entered into with Co-operative Bulk Handling (CBH) in 2003.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 93 notes to the financial statements For the year ended 30 June 2006
2006 2005 $000 $000
Rental Income for 99 years of $7.45 million was received in full at the commencement of the lease, and is accounted for as revenue over the 99 year lease period, with the prepaid portion shown as deferred income (see Note 33). A further 99 year operating lease for 15 grain receival sites was entered into with CBH in 2004. Rental Income for 99 years of $775,000 was received in full at the commencement of the lease, and is accounted for as revenue over the 99 year lease period, with the prepaid portion shown as deferred income (see Note 33).
14 Operating lease revenue Rental income from Freight Network Infrastructure 19,364 18,947
15 Grants and subsidies revenue Department for Planning and Infrastructure - Perth CAT costs 7,427 6,958 Department for Planning and Infrastructure - Funding for CAT bus replacement and new CAT depot 7,592 0 Department of Education grant 1,042 682 Department for Planning and Infrastructure - Safer Transport grant 0 2,999 Department of Environment and Heritage 210 0 Town of Victoria Park 750 0 17,021 10,639
16 Interest revenue
Interest Revenue 1,084 1,342
Interest revenue is received quarterly from Department of Treasury and Finance calculated on the daily balance held on the interest bearing bank account.
17 Other revenue Rents and leases 7,157 6,778 Advertising income 3,465 2,673 Parking and infringements 1,872 2,042 Foreign exchange gain 1,260 0 External works 1,222 2,040 Marketing 658 246 Liquidated damages 44 806 Land sales(i) 2,899 3 Miscellaneous 2,286 1,812 20,863 16,400 (i) Proceeds from DPI for sale of land not previously recognised by the PTA.
18 Net gain/(loss) on disposal of non-current assets Cost of Disposal of Non-Current Assets Land and buses 605 3,111
Proceeds from Disposal of Non-Current Assets Land and buses 522 25,888 Net gain/(loss) on disposal of Non-Current Assets (83) 22,777
19 Income from State Government Appropriation revenue received during the year: Service appropriations (i) 559,824 475,370
Resources received free of charge (ii) Department of Land Information 41 1,618 559,865 476,988
94 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 2006 2005 $000 $000
(i) Service appropriations are accrual amounts reflecting the full cost of services delivered. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year. (ii) Where assets or services have been received free of charge or for nominal consideration, the PTA recognises revenues (except where the contribution of assets or services is in the nature of contributions by owners, in which case the PTA shall make a direct adjustment to equity) equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have been purchased if not donated, and those fair values shall be recognised as assets or expenses, as applicable.
20 Restricted cash and cash equivalents Contractors’ deposits 459 644 Railway Servants’ Benefit Fund 235 288 694 932 Contractors’ deposits are held by the PTA as security for contractor performance according to the terms and conditions of the contracts established with each contractor. Generally, the contracts require that these deposits must be maintained intact by the PTA for repayment to the contractor on successful performance of contract conditions. The Railway Servants’ Benefit Fund is to be used only for the purpose of providing welfare to staff.
21 Inventories Current Inventories not held for resale: Maintenance spares - at cost 7,777 7,599 Less provision for obsolescence (131) (131) 7,646 7,468
22 Receivables Current Receivables 3,122 3,034 Provision for doubtful debts (104) (346) GST receivable 8,942 9,158 Other receivables – external works 64 47 12,024 11,893
Prepayments 560 430 Cash advance to Main Roads on New MetroRail project 0 8,100 12,584 20,423
23 Amounts receivable for services Non-current 224,040 44,557 224,040 144,557
This asset represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability. 24 Other current assets Deferred loss on foreign exchange hedging contract (i) 0 3,854 Foreign exchange hedging contract receivable 0 25,080 0 28,934 (i) On 1 July 2005 derivatives were measured at fair value as per AASB 132 and AASB 139. Changes in fair value at transition date on 1 July 2005 were taken to retained earnings. See note 34.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 95 notes to the financial statements For the year ended 30 June 2006
25 Infrastructure, property, plant, equipment and vehicles
2006 2006 2006 2006 2005 2005 2005 2005 Cost At Fair Accumulated Carrying Cost At Fair Accumulated Carrying Value depreciation amount as Value depreciation amount as at 30 June at 30 June 2006 2005
$000 $000 $000 $000 $000 $000 $000 $000
Owned Assets: Freehold land (iii) - 199,984 - 199,984 - 173,121 - 173,121 Buildings - 54,925 6,611 48,314 - 37,784 3,305 34,479 Freight Network Infrastructure - 300,885 17,242 283,643 - 250,298 10,862 239,436 Rollingstock - 391,611 28,791 362,820 - 285,717 15,656 270,061 Railway infrastructure - 745,721 73,459 672,262 - 653,848 46,314 607,534 Plant, equipment and motor vehicles - 7,061 3,409 3,652 - 6,361 2,422 3,939 Bus infrastructure - 74,177 12,451 61,726 - 73,739 8,252 65,487 Vessels - 576 464 112 - 576 352 224 Buses - 225,287 55,647 169,640 - 199,716 37,593 162,123 Leased Assets: (i) Railcars - 65,828 10,782 55,046 65,828 7,188 58,640 Construction in progress (ii) 989,909 - - 989,909 744,133 - - 744,133 TOTAL 989,909 2,066,055 208,856 2,847,108 744,133 1,746,988 131,944 2,359,177
(i) For leased assets the fair value has been deemed to be capitalised cost. (ii) Construction in progress is valued at cost. (iii) Land controlled by the PTA has been revalued as at 1 July 2005 by the Department of Land and Information (Valuation Services). The valuations were performed during the year ended 30 June 2005 and recognised at 30 June 2006. The fair value was determined by reference to market values See note 2g. For all other assets fair value has been determined on the basis of engineering expert valuation or latest prices in the market for equivalent assets at 1 July 2003. Reconciliations of the carrying amounts of infrastructure, property, plant, equipment and vehicles at the beginning and end of the current financial year are set out below.
2006 Carrying Additions Revaluation Disposal Depreciation Carrying amount at amount at the start of the end of the year the year
Owned Assets: Freehold land 173,121 - 26,913 (50) - 99,984 Buildings 34,479 17,141 - - (3,306) 48,314 Freight Network Infrastructure 239,436 50,587 - - (6,380) 283,643 Rollingstock 270,06 06,005 - (81) (13,165) 362,820 Railway infrastructure 607,534 06,308 - (7) (41,573) 672,262 Plant, equipment and motor vehicles 3,939 989 - (32) (1,244) 3,652 Bus infrastructure 65,487 501 - (47) (4,215) 61,726 Vessels 224 - - - (112) 2 Buses 162,123 26,152 - (387) (18,248) 69,640 Leased assets: Leased Railcars 58,640 - - - (3,594) 55,046 Construction in progress 744,133 245,776 - - - 989,909 TOTAL 2,359,177 553,459 26,913 (604) (91,837) 2,847,108
96 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006
2005 Carrying Additions Disposal Depreciation Carrying amount at the amount at the start of the end of the year year Owned Assets: Freehold land 174,913 304 (2,096) - 73,121 Buildings 36,149 - - (1,670) 34,479 Freight Network Infrastructure 244,867 - - (5,431) 239,436 Rollingstock 130,783 148,839 - (9,561) 270,061 Railway infrastructure 499,508 133,085 - (25,059) 607,534 Plant, equipment and motor vehicles 1,650 3,846 - (1,557) 3,939 Bus infrastructure 69,600 - - (4,113) 65,487 Vessels 400 - - (176) 224 Buses 158,222 22,624 (1,021) (17,702) 62,123 Leased assets: Leased Railcars 62,234 - - (3,594) 58,640 Construction in progress 476,717 267,416 - - 744,133 TOTAL 1,855,043 576,114 (3,117) (68,863) 2,359,177
2006 2005 $000 $000 26 Intangible assets Software - at cost 2,602 1,981 Accumulated amortisation (1,867) (1,227) 735 754
Significant costs associated with the acquisition of computer software are capitalised and amortised on a straight line basis over the periods of the expected benefit, which varies from three to five years. Computer software that is not an integral part of the relevant hardware is treated as an intangible asset. Reconciliations of the carrying amounts of intangibles at the beginning and end of the current financial year are set out below.
Software Carrying amount at start of the year 754 1,375 Additions 621 0 Amortisation expense (640) (621) Carrying amount at end of the year 735 754
27 Impairment of assets There are no indications of impairment of property, plant and equipment, infrastructure and intangible assets at 30 June 2006. PTA held no goodwill or intangible assets with an indefinite useful life during 2005/06 and at 30 June 2006 there were no intangible assets not yet available for use.
28 Payables Current Trade payables 8,952 4,501 Accrued expenses - operational 65,871 66,261 Accrued expenses - salaries 2,162 2,689 Accrued expenses - interest 21,221 22,547 Other payables 671 1,061 98,877 107,059
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 97 notes to the financial statements For the year ended 30 June 2006
2006 2005 $000 $000 29 Borrowings (a) Current Western Australian Treasury Corporation Loans 1,119,396 374,612 Finance lease liability (i) 2,899 7,730 Commonwealth Loans 383 381 1,122,678 382,723 (b) Non-Current Western Australian Treasury Corporation Loans 594,920 ,196,517 Finance lease liability (i) 0 2,918 Commonwealth Loans 3,874 4,257 598,794 1,203,692
(i) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
Railcars 36,841 58,640
30 Provisions Current The carrying amounts of non-current assets leased as security are: Employee benefits provision Annual leave(a) 6,980 6,704 Long service leave(b) 5,699 5,226 12,679 11,930 Other provisions Public liability provision 443 557 Workers’ compensation 3,075 3,318 Employment on-costs(c) 1,192 943 4,710 4,818
17,389 16,748 Non-Current Employee benefits provision Long service leave(b) 3,752 2,890 Deferred salary scheme 30 12 3,782 2,902 Other provisions Employment on-costs(c) 357 222 357 222
4,139 3,124
a) Annual leave has been classified as current as there is no unconditional right to defer settlement for at least1 2 months after reporting date. Assessment indicate that actual settlement of liabilities will occur as follows: Within 12 months of reporting date 4,141 3,181 More than 12 months after reporting date 2,839 3,523
6,980 6,704
98 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 2006 2005 $000 $000 b) Long service leave liability has been classified as current where there is no unconditional right to defer settlement for at least 12 months after reporting date. Assessments indicate that actual settlement of the liabilities will occur as follows: Within 12 months of reporting date 709 584 More than 12 months after reporting date 8,742 7,531 9,451 8,115
c) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including payroll tax and workers compensation premiums. The provision is the present value of expected future payments. The associated expense is included under note 11 ‘Other expenses’. Movements in Other Provisions Movements in each class of provisions during the financial year, other than employee benefits, are set out below. Public liability provision Carrying amount at the start of the year 557 792 Additional provisions recognised 705 563 Payments/other sacrifices of economic benefit (819) (798) Carrying amount at the end of the year 443 557
The public liability provision represents the PTA’s estimate of outstanding claims from previous years. Workers’ compensation provisions Carrying amount at the start of the year 3,318 1,591 Additional provisions recognised 3,155 4,813 Payments/other sacrifices of economic benefit (3,398) (3,086) Carrying amount at the end of the year 3,075 3,318
The PTA pays a deposit contribution to RiskCover each year. This contribution is based on claims experience and is adjusted by actuarial assessments as claims prevail. Employment on-cost provision Carrying amount at the start of the year 1,166 1,195 Additional provisions recognised 988 366 Payments/other sacrifices of economic benefit (605) (395) Carrying amount at the end of the year 1,549 1,166
31 Other current liabilities Contractors’ deposits 459 644 Payments held in suspense 59 78 Railway Servants’ Benefit Fund 235 288 Foreign exchange hedging contract payable (i) 0 28,934 753 29,944
(i) On 1 July 2005 derivatives were measured at fair value as per AASB 132 and AASB 139. Changes in fair value at transition date on 1 July 2005 were taken to retained earnings. See note 34.
32 Derivatives Foreign exchange contracts 996 0 996 0 The PTA has an exposure to changes in foreign exchange rates resulting from the bus replacement program. This program requires payment for bus chassis to be made in Euros. The PTA uses forward exchange contracts in Euros to hedge the risk.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 99 notes to the financial statements For the year ended 30 June 2006
At the balance sheet date the net fair value of these contracts was $996k (2005 - nil) comprising assets of $13,630k (2005 - $25,080k) and liabilities of $14,626k (2005 - $28,934k).
In the year ended 30 June 2006: • On the date of transition to AASB 132 and 139 on 1 July 2005 the deferred loss on the contracts of $3,854k was debited to retained earnings; and • There was a gain of $1,260k from the change in the fair value of the asset during the year. At reporting date, the details of outstanding forward contracts are:
2006 2005 2006 2005 $000 $000 Sell Australian Dollars Average Exchange Rate Buy Euro Maturity: 0-6 months 8,469 8,539 0.5430 0.5440 6-12 months 6,157 5,794 0.5445 0.5445 12-24 months 0 3,090 0 0.5445 Buy GBP Maturity: 0-6 months 0 ,511 0 0.4030
33 Deferred income – operating leases 2006 2005 $000 $000 Current: Freight Network Infrastructure prepaid operating lease 12,744 3,508 Co-operative Bulk Handling 99 year lease 83 83 12,827 13,591
Non-Current: Freight Network Infrastructure prepaid operating lease 194,549 207,293 Co-operative Bulk Handling 99 year lease 7,817 7,900 202,366 215,193
215,193 228,784
100 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 2006 2005 $000 $000 34 Equity Equity represents the residual interest in the net assets of the PTA. The Government holds the equity interest in the Authority on behalf of the community.
Contributed Equity Balance at start of the period 530,424 483,758 Capital contributions (i) 424,947 71,515 Distribution to owner (ii), (iii) (15,500) (24,849) Balance at end of the period 939,871 530,424
Asset Revaluation Reserve Balance at start of the period 0 0 Revaluation of land 26,913 0 Balance at end of the the period 26,913 0
Accumulated surplus/(deficit) Opening balance 63,508 26,369 Adjustment on adoption of AASB 132 and AASB 139 (3,854) 0 Surplus/(deficit) for the period 8,696 37,139 Balance at end of period 68,350 63,508
Balance of equity at the end of period 1,035,134 593,932
(i) Capital contributions received during the year have been designated as contributions by owners and are credited directly to equity in the Balance Sheet. (ii) Proceeds from DPI for sale of land not previously recognised by the PTA - $2.8 million. (iii) As part of the New MetroRail project, Miller’s way and Spencer Road bridge assets were transferred to Main Roads Western Australia - $12.8 million.
35 Notes to the Cash Flow Statement a) Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flow is reconciled to the related items in the Balance Sheet as follows: Cash and cash equivalents 1,146 3,761 Restricted cash and cash equivalents (refer to note 20) 694 932 1,840 4,693 b) Financing facilities The PTA has a short-term liquidity facility of $200 million (2004/05: $200 million) with the Western Australian Treasury Corporation. Amounts drawn from this facility at June 30 30,000 0
The Western Australian Treasury Corporation has provided a facility of $US 85 million (2004/05: $US 93 million) to the PTA to meet contingent obligations under a lease agreement that may eventuate during the life of the lease. As at 30 June 2006, none of this facility has been drawn (2004/05: Nil).
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 101 notes to the financial statements For the year ended 30 June 2006
2006 2005 $000 $000
c) Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities
Net cost of services (551,169) (439,849)
Non cash items: Depreciation and amortisation expense 92,477 69,484 Loss/(gain) on sale of property, plant and equipment 83 (22,777) Resources received free of charge 41 1,618 Other non-cash adjustments (238) (60) Sale of land by Department of Planning and Infrastructure (2,728) 0
(Increase)/ Decrease in assets: Current receivables 7,622 (5,509) Current inventories (178) (29) Other current assets 15,304 27,971
Increase/ (Decrease) in liabilities: Current payables (1,556) 1,398 Current provisions 640 3,650 Other current liabilities (14,565) (23,298) Deferred income operating lease (764) (811) Non-current provisions 1,016 817 Non-current deferred operating lease revenue (12,827) (13,591)
Change in GST receivables/payments 216 (3,204)
Net cash used in operating activities (466,626) (404,190)
36 Commitments a) Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:
Within one year 274,977 519,951 Later than one year and not later than five years 156,823 419,148 Later than five years 9,650 0 441,450 939,099
The capital commitments include amounts for: Railway infrastructure 269,490 661,902 Bus infrastructure 14,790 0 Railcars - Transperth Train Operations 6,670 45,615 Plant, equipment and motor vehicles 13,000 20,132 Buses 137,500 211,450 441,450 939,099 b) (i) Finance lease commitments: Minimum lease payment commitments in relation to finance leases are payable as follows: Within one year 2,904 7,761 Later than one year and not later than five years 0 2,922 Minimum finance lease payments 2,904 0,683
Less future finance charges (5) (35) Present value of finance lease liabilities 2,899 10,648
102 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 2006 2005 $000 $000
The present value of finance leases payable is as follows: Within one year 2,899 7,730 Later than one year and not later than five years 0 2,918 2,899 10,648 (ii) Non-cancellable operating lease commitments: Commitments for minimum lease payments are payable as follows: Within one year 924 718 Later than one year and not later than five years 184 179 1,108 897
c) Other expenditure commitments contracted for at the reporting date but not recognised as liabilities, are payable as follows: Within one year 274,128 267,228 Later than one year and not later than five years 877,355 960,656 Later than five years 984,675 ,062,691 2,136,158 2,290,575
The other expenditure commitments include amounts for: Land and building maintenance 14,112 820 Transperth train operations 211,198 214,775 Railway infrastructure 14,141 2,500 Railcars and road coaches 7,216 0,280 Buses and support services 646,566 748,200 School bus services 1,236,748 ,301,239 Miscellaneous 6,177 2,761 2,136,158 2,290,575
The commitments are all inclusive of GST.
37 Contingent liabilities and contingent assets
Contingent Liabilities In addition to the liabilities included in the financial statements, there are the following contingent liabilities: Litigation in progress Leighton Contractors Pty Ltd, the contractor engaged by the PTA to design and construct the City portion of the Southern Suburbs Railway, has commenced 3 Supreme Court actions against the PTA, claiming an aggregate of $177 million. The actions relate to contractual disputes between the PTA and Leighton Contractors, on Leighton Contractors’ alleged entitlements under the rise & fall and contaminated material provisions of the contract, and a dispute relating to the adequacy of the contracts work insurance effected by the PTA pursuant to the contract. The PTA has denied all liability and is vigorously defending the actions.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 103 statement of financial performance For the year ended 30 June 2006
38 Remuneration of members of the Accountable Authority and senior officers Remuneration of Member of the Accountable Authority The number of members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are: $ 2006 2005 190,001 - 200,000 0 0 260,001 - 270,000 1 1
2006 2005 $000 $000
The total remuneration of the members of the Accountable Authority is: 266 263
The superannuation included here represents the superannuation expense incurred by the PTA in respect of the member of the Accountable Authority. No member of the Accountable Authority is a member of the Pension Scheme. Remuneration of senior officers The number of senior officers other than senior officers reported as members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are: $ 2006 2005 100,001 - 110,000 1 2 110,001 - 120,000 0 1 120,001 - 130,000 0 2 130,001 - 140,000 4 3 140,001 - 150,000 1 3 150,001 - 160,000 4 0 10 11
2006 2005 $000 $000
Total remuneration of the senior officers is: 1,414 1,450
The superannuation included here represents the superannuation expense incurred by the PTA in respect of Senior Officers, other than the Senior Officers reported as a member of the Accountable Authority. No Senior Officers are members of the Pension Scheme.
39 Financial instruments
a) Financial Risk Management Objectives and Policies Financial instruments held by the PTA are cash and cash equivalents, loans, finance lease, receivables and payables. The PTA has exposure to a variety of financial risks. The PTA’s overall risk management program focuses on managing the risks identified below. Credit risk The PTA trades only with recognised, creditworthy third parties. The PTA has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the PTA’s exposure to bad debt is minimal. There are no significant concentrations of credit risk.
104 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Liquidity risk The PTA has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. The PTA has a short-term liquidity facility of $200 million on which it can draw down to fund temporary cash shortfall. Cash flow interest rate risk The PTA’s exposure to market risk for changes in interest relates primarily to the long-term debt obligations. The PTA’s borrowings are all obtained through Western Australian Treasury Corporation (WATC) and are at fixed rates with varying maturities. The risk is managed by WATC through portfolio diversification and variation in maturity dates. The PTA earns interest on the daily balance of its bank account. Foreign exchange risk The PTA is exposed to foreign exchange risk arising from currency exposure to the Euro. Forward contracts transacted with WATC are used to manage these risks. The purpose of the foreign currency contracts is to protect against the risk that eventual dollar outflows in respect of purchases in foreign currency may be adversely affected by changes in exchange rates. b) Financial Instrument disclosures Interest Rate Risk Exposure The following table details the PTA’s exposure to interest risk as at the reporting date:
Notes Weighted Variable Fixed interest rate maturity Non- Total average interest interest effective rate (i) or less to 5 more bearing interest than years than rate % year 5 years
2006 $000 $000 $000 $000 $000 $000 Financial Assets Cash and cash equivalents 35 5.55 ,146 ,146 Restricted cash and cash equivalents 35 5.55 694 694 Receivables 22 2,584 2,584 Amounts receivable for services 23 224,040 224,040 1,840 236,624 238,464
Financial Liabilities Payables 28 98,877 98,877 Other current liabilities 3 753 753 Derivatives 32 996 996 WATC Loans (ii) 29 6.05 ,119,396 324,783 270,137 ,714,316 Commonwealth Loans 29 5.93 383 ,542 2,332 4,257 Lease Liabilities 29 6.35 2,899 2,899 1,122,678 326,325 272,469 100,626 1,822,098
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 105 statement of financial performance For the year ended 30 June 2006
Notes Weighted Variable Fixed interest rate maturity Non- Total average interest interest effective rate (i) or less to 5 more bearing interest than years than rate % year 5 years
2005 $000 $000 $000 $000 $000 $000 Financial Assets Cash and cash equivalents 35 5.29 3,76 3,761 Restricted cash and cash equivalents 35 5.29 932 932 Receivables 22 20,423 20,423 Amounts receivable for services 23 44,557 44,557 4,693 164,980 169,673
Financial Liabilities Payables 28 07,059 07,059 Other current liabilities 3 29,944 29,944 Derivatives 32 WATC Loans (ii) 29 6.05 656,149 356,199 558,78 ,571,129 Commonwealth Loans 29 5.93 4,638 4,638 Lease Liabilities 29 6.47 0,648 0,648 10,648 656,149 356,199 563,419 137,003 1,723,418
(i) Variable interest rates represent the most recently determined rate applicable to the instrument at balance date. (ii) Western Australian Treasury Corporation loans. Fair Values The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values. Credit Risk Exposure The PTA’s credit risk on financial assets, which have been recognised in the Balance Sheet, is generally the carrying amount, net of any provision for doubtful debts. Concentrations of credit risk on financial assets are primarily related to property rental agreements and other miscellaneous revenue. Except for securities held to ensure the performance of contractor guarantees or warrantees, amounts due from major debtors are not normally secured by collateral. However the creditworthiness of debtors is regularly monitored. Securities held to ensure the performance of contractor guarantees or warrantees include Bank Guarantees, Personal (Directors) Guarantees or cash. The value of securities held is dependant on the nature, including the complexity and risk, of the contract. 2006 2005 $000 $000
40 Supplementary financial information
Losses through theft, defaults and other causes Losses of public moneys and public and other property through theft and default 7 2
Stocks Obsolescence, damage, surplus 0 287
Revenue written off 24 31
Gifts of public property Gifts of public property provided by PTA 0 12
31 332
106 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 41 Events occurring after the balance sheet date The PTA has not identified any significant events after balance sheet date that would require adjustment or disclosure to be made.
42 Explanatory Statement a) Significant variations between estimates and actual results for the financial year Details and reasons for significant variations between estimates and actual results are detailed below. Significant variations are considered to be those greater than 10% or $1 million. 2006 2006 Actual Estimate Variance $000 $000 $000 Income 148,673 23,419 25,254 Cost of Services 699,842 657,956 (41,886) Net Cost of Services 551,169 534,537 (16,632) Income Income was $25 million (20%) above the estimate. The variations include the following significant items: i) Capital Grant of $7.6 million from Department for Planning and Infrastructure for the Central Area Transit (CAT) bus replacement, CAT depot and yellow CAT extension; ii) MultiRider and cash fares increased by $3.4 million as a result of increased patronage; iii) Proceeds from DPI for sale of land not previously recognised by the PTA - $2.8 million; iv) Advertising revenue increased by $2.0 million from changed contractual arrangements; v) Foreign exchange gain of $1.3 million on foreign exchange transactions during the year and foreign exchange contracts outstanding at year end; vi) Grants and subsidies revenue of $1.2 million mainly due to a contribution from the City of Victoria Park for Miller’s crossing bridge; vii) Regional Town Bus Services $1.1 million being brought into account as revenue (in the estimate, revenue was netted off against expenditure); viii) Increase in revenue from external works of $0.8 million; and ix) Service contribution revenue $0.8 million due to joint ticketing of various sporting and entertainment events. Total cost of services Cost of services for the year was $42 million (6.0%) above estimate. There were several significant positive and negative variations that contributed to this overall variation. These variations include: i) Increased depreciation of $17 million due to write down of stations and train control system no longer used due to upgrades; ii) Increased Transperth bus contract costs of $14 million mainly due to fuel, labour, security and maintenance contracts; iii) Increased capital user charge of $5 million arising from the deferral of asset transfers to Local Governments and Main Roads WA by New MetroRail because construction was not completed at 30 June 2006; iv) Increased railcar maintenance costs of $4 million mainly due to railcar overhauls; v) Contribution of $3 million to Main Roads for the South Street bus lane; vi) Increase in land rationalisation expenses $2.8 million due to clean up of contaminated site, remediation and subdivision at Forrestfield, Leighton and Robb’s Jetty; vii) Increased infrastructure costs of $2 million mainly due to concrete re-sleepering on the Armadale line; viii) Grants of $2 million to Town of Victoria Park for Miller’s crossing bridge as part of the New MetroRail project and City of Joondalup for car park; ix) Expenditure of $1 million due to installation of infrastructure for the connection of natural gas supplies to new CAT Depot; x) Increased infrastructure costs of $1 million related to Goongonup bridge; offset by xi) Lower interest on borrowings of $13 million due to delays in capital works expenditure and lower than projected interest rate.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 107 b) Significant variations between actual revenues and expenditures for the financial year and revenues and expenditures for the immediately preceding financial year Details and reasons for significant variations between actual results with the corresponding items of the preceding year are detailed below. Significant variations are considered to be those greater than 10% or $1 million
2006 2005 Variance $000 $000 $000
Employee benefit expense 68,874 60,910 7,964 Supplies and services 98,828 92,841 5,987 Depreciation and amortisation expense 92,477 69,484 22,993 Finance costs 105,903 85,492 20,411 Grants and subsidies expense 243,341 220,274 23,067 Capital user charge 65,052 44,010 21,042 Land rationalisation expense 6,223 2,903 3,320 User charges and fees 90,258 85,175 5,083 Grants and subsidies revenue 17,02 0,639 6,382 Other revenue 20,863 6,400 4,463 Gain on disposal of non-current assets 0 22,777 (22,777) Employee benefit expense Increase in employee benefit expense due to increase in transit guards and train drivers for the Northern Suburbs line extension to Clarkson and the Thornlie line. Supplies and services i) Increased infrastructure costs of $1.6 million due to concrete re-sleepering on the Armadale line. ii) Installation of connection of natural gas supplies to new CAT Depot - $1 million. iii) Increased security and maintenance contracts. Depreciation and amortisation expense Increase in depreciation of $23 million mainly due to increased depreciation of stations and train control system which have been upgraded and the commissioning of 12 three-car units electric Railcars, 53 new gas buses, AvonLink train, Thornlie rail infrastructure, train control system, closed circuit television systems (CCTV) infrastructure and the Geraldton Southern Rail Corridor during the financial year. Borrowing costs expense Increase in borrowings to purchase buses, railcars and construction of the Southern Suburbs Railway line. Grants and subsidies Increased Transperth bus contract costs mainly due to fuel, labour and increased kilometers, School Bus Services Composite Rate model indexation costs and Grant to Town of Victoria Park for Miller’s crossing bridge as part of the New MetroRail project. Capital user charge The capital user charge is based on the average net assets multiplied by 8%. The variance is mainly due to the repayment of the Freight debt in August 2005 - $325 million funded by an equity injection from DTF. Land rationalisation expense Increase in expenditure due to clean up of contaminated site, remediation and subdivision at Forrestfield, Leighton and Robb’s Jetty. User charges and fees Increase in patronage and additional revenue from the opening of new Thornlie station.
108 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Grant and subsidies revenue Increase in capital grants and subsidies revenue from the Department for Planning and Infrastructure of $7.6 million for the CAT bus replacement , new CAT Depot at Claisebrook and Yellow CAT extension. Other revenue Increased revenue of $4.5 million mainly due to: a. A favourable exchange rate movement on foreign exchange transactions during the year and foreign exchange contracts outstanding at year end - $1.3 million and b. Proceeds from DPI for sale of land not previously recognised by the PTA - $2.8 million. Gain on disposal of non-current assets No material disposal of non-current assets in 2005/06.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 109
0 83 $000 2005 7,959 2,903 69,484 44,0 1 0 85, 1 75 92,84 1 22,777 60,9 1 0 85,492 37,139 220,274 475,370 595,212 155,363 439,849 476,988
Total 0 83 83 4 1 ,6 1 8 $000 2006 8, 1 28 6,223 92,477 65,052 90,258 98,828 68,874 20,863 6,400 243,34 1 559,824 699,842 148,673 551,169 559,865 8,696 0 0 0 0 83 2005 5,987 3,825 2,903 4, 11 2 0,933 ,339 2,999 7,02 0,639 2,969 9,59 1 $000 2,168 22,848 43,288 26,56 1 05,903 57,978 55,810 44,906 42,738 0 2 0 0 5 1 83 4 1 ,6 1 8 750 2006 4,706 7, 1 05 ,62 1 6,223 2,244 Rail corridor and Rail corridor $000 23,73 1 52,911 33,058 19,853 23,772 residual freight issues freight residual 3,919 0 6,656 0 0 0 0 0 9,364 0 8,947 0 ,084 2 9,364 ,777 ,342 8,947 ,084 ,342 0 33 988 68 1 716 2005 2,06 1 ,42 1 $000 1,016 65,758 69,289 68,989 68,273 69,289 0 0 3 0 0 0 0 0 68 39 bus service Regional school 2006 2, 1 39 $000 1,149 70,662 75,286 74,472 73,323 75,286 1,963 0 0 0 0 0 0 0 ,042 0 6 0 885 39 56 2005 9,662 4,845 4,287 4 3,366 6 0 4,503 8,4 1 5 $000 8,421 3 1 ,764 41,110 32,689 31,764 (925) 0 0 0 0 0 0 0 0 25 636 2006 9,650 5,744 4,52 1 3,574 2, 1 33 ,830 9,26 1 $000 9,286 33, 1 49 Country passenger 41,829 32,543 33,149 rail and coach services 606
0 0 3 0 0 0 0 2005 6, 1 29 6, 1 86 6,959 6,80 1 $000 46,2 1 8 63,997 58,636 5,458 54,644 6,235 36,809 ,503 76,727 90,416 33 1 ,029 427,135 336,719 331,029 (7 1 ) (5,690)
0 0 0 0 0 0 2006 5,992 7,9 1 4 9,022 passenger services $000 55,664 77, 1 6 79,6 1 4 84,726 46,964 80,929 1 5,229 1 72,679 54,5 1 6 427,658 530,630 105,180 425,450 427,658 and regional Metropolitan (84) 2,208
Schedule of income and expenses by service COST OF SERVICES Expenses benefit expenses Employee Supplies and services and amortisation Depreciation expense Finance costs Grants & subsidies user charge Capital Energy and fuel Land rationalisation expense assets Loss on disposal of non-current Other expenses Total cost of services Income User charges and fees Land rationalisation lease income Operating lease revenue Grants and subsidies revenue Interest assets Gain on disposal of non-current Other revenue Total income other than from State Government NET COST OF SERVICES INCOME FROM STATE GOVERNMENT Appropriation Service 43 Resources received free of charge free received Resources Total income from State Government Surplus/(deficit) for the period
110 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 2006 2005 $000 $000
44 Remuneration of auditor
Remuneration to the Auditor General for the financial year is as follows: Auditing the accounts, financial statements and performance indicators 141 128
45 Reconciliations explaining the transition to Australian equivalents to International Financial Reporting Standards (AIFRS)
Reconciliation of equity at the date of transition to AIFRS: 1 July 2004 (AASB 1.39 (a)(i))
Previous AGAAP Adjustments AIFRS 1 July 2004 1 July 2004 1 July 2004 AASB 101.68(c)
Note $000 $000 $000
ASSETS Current Assets Cash and cash equivalents 9,815 9,815 Restricted cash and cash equivalents 1,002 1,002 Inventories 7,439 7,439 Receivables 11,711 ,711 Other current assets 56,904 56,904 Total Current Assets 86,871 0 86,871
Non-Current Assets Amounts receivable for services 75,575 75,575 45.1a Property, plant, equipment and vehicles 1,856,418 (1,374) ,855,044 45.1a Intangible assets 0 1,374 1,374 Total Non-Current Assets 1,931,993 0 1,931,993
Total Assets 2,018,864 0 2,018,864
LIABILITIES Current Liabilities Payables 66,316 66,316 Borrowings 42,985 42,985 Provisions 13,098 3,098 Other current liabilities 53,241 53,241 Deferred Income-Operating Leases 14,402 4,402 Total Current Liabilities 190,042 0 190,042
Non-Current Liabilities Borrowings 1,087,604 ,087,604 Provisions 2,307 2,307 Deferred Income-Operating Leases 228,784 228,784 Total Non-Current Liabilities 1,318,695 0 1,318,695
Total Liabilities 1,508,737 0 1,508,737
Net Assets 510,127 0 510,127
Equity Contributed equity 483,758 483,758 Accumulated surplus 26,369 26,369 Total Equity 510,127 0 510,127
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 111 statement of financial performance For the year ended 30 June 2006
Reconciliation of equity at the end of last reporting period under previous AGAAP: 30 June 2005 (AASB 1.39(a)(ii))
AGAAP Adjustments AIFRS 30 June 05 30 June 05 AASB 116 AASB AASB 138 101.75(b)
Note $000 $000 $000 $000
ASSETS Current Assets Cash assets 3,761 3,761 Restricted cash assets 932 932 Inventories 7,468 7,468 45.2a Receivables 11,893 8,530 20,423 45.2a Other current assets 37,464 (8,530) 28,934 Total Current Assets 61,518 0 0 61,518
Non-Current Assets Amounts receivable for services 144,557 44,557 45.1b Property, plant, equipment and vehicles 2,359,931 (754) 2,359,177 45.1b Intangible assets 0 754 754 Total Non-Current Assets 2,504,488 0 0 2,504,488
Total Assets 2,566,006 0 0 2,566,006
LIABILITIES Current Liabilities Payables 107,059 07,059 Borrowings 382,723 382,723 Provisions 16,748 6,748 Other current liabilities 29,944 29,944 Deferred Income-Operating Leases 13,591 3,591 Total Current Liabilities 550,065 0 0 550,065
Non-Current Liabilities Borrowings 1,203,692 ,203,692 Provisions 3,124 3,124 Deferred Income-Operating Leases 215,193 215,193 Total Non-Current Liabilities 1,422,009 0 0 1,422,009
Total Liabilities 1,972,074 0 0 1,972,074
Net Assets 593,932 0 0 593,932
Equity Contributed equity 530,424 530,424 Accumulated surplus/(deficit) 63,508 63,508 Total Equity 593,932 0 0 593,932
112 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Reconciliation of Income Statement for the year ended 30 June 2005 (AASB 1.39(b))
AGAAP Adjustments AIFRS 30 June 05 30 June 05 AASB 116 AASB 119
Note $000 $000 $000 $000
COST OF SERVICES Expenses 45.3a Employee benefit expense 70,631 (9,721) 60,910 Supplies and Services 92,841 92,841 Depreciation and amortisation expense 69,484 69,484 Finance costs 85,492 85,492 Grants and subsidies 220,274 220,274 Capital user charge 44,010 44,010 Energy and fuel 7,959 7,959 Land rationalisation expense 2,903 2,903 45.4 Carrying amount of non-current assets disposed of 3,111 (3,111) 0 45.3a Other expenses 1,618 9,72 ,339 Total cost of services 598,323 (3,111) 0 595,212
Income Revenue User charges and fees 85,175 85,175 Land rationalisation lease revenue 83 83 Operating lease revenue 18,947 8,947 Grants and subsidies 10,639 0,639 Interest revenue 1,342 1,342 45.4 Proceeds from disposal of non-current assets 25,888 (25,888) 0 Other revenue 16,400 6,400 Total revenue 158,474 (25,888) 0 132,586
Gains 45.4 Gain on disposal of non-current assets 0 22,777 22,777
45.4 Total income other than income from State Government 158,474 (3,111) 0 155,363
NET COST OF SERVICES 439,849 0 0 439,849
INCOME FROM STATE GOVERNMENT Service appropriation 475,370 475,370 Resources received free of charge 1,618 1,618 Total income from State Government 476,988 0 0 476,988
SURPLUS/DEFICIT FOR THE PERIOD 37,139 0 0 37,139
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 113 statement of financial performance For the year ended 30 June 2006
Reconciliation of Cash Flow Statement for the year ended 30 June 2005 (AASB 1.40)
AGAAP Adjustments AIFRS 2005 AASB 119 2005
Note $000 $000 $000
CASH FLOWS FROM STATE GOVERNMENT Service appropriation 406,388 406,388 Capital contributions 71,515 71,515 Net cash provided by State Government 477,903 0 477,903
Utilised as follows:
CASH FLOWS FROM OPERATING ACTIVITIES Payments 45.3b Employee benefits (67,844) 9,721 (58,123) Supplies and services (108,197) (108,197) Finance costs (76,781) (76,781) Grants and subsidies (219,009) (219,009) Capital user charge (44,010) (44,010) GST payments on purchases (84,905) (84,905) 45.3b Other payments 0 (9,721) (9,721)
Receipts Contribution-other Government Agencies 11,276 11,276 Transwa 9,662 9,662 Transperth train operations 25,538 25,538 Transperth buses 56,280 56,280 Interest received 1,367 ,367 GST receipts on sales 10,512 0,512 GST receipts from Taxation Authority 72,074 72,074 Receipts from customers 9,847 9,847 Net cash used in operating activities (404,190) 0 (404,190)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of non current assets 1,015 ,015 Purchase of non-current assets PTA (147,602) (147,602) Purchase of non-current assets New MetroRail (389,077) (389,077) Net cash used in investing activities (535,664) 0 (535,664)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 553,524 553,524 Repayment of borrowings (88,449) (88,449) Other repayments (9,248) (9,248) Net cash provided by financing activities 455,827 0 455,827
Net increase/(decrease) in cash and cash equivalents (6,124) (6,124) Cash and cash equivalents at the beginning of the period 10,817 10,817
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 4,693 0 4,693
114 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 Notes to reconciliations Note 45.1 Intangible assets (AASB 138) AASB 138 requires that software not integral to the operation of a computer must be disclosed as intangible assets. Intangible assets must be disclosed on the balance sheet. All software has previously been classified as property, plant and equipment (office equipment). The following adjustments have been made: 45.1a Adjustments to opening Balance Sheet (1 July 2004) The PTA has transferred $1,374k in software from property, plant and equipment to intangible assets. 45.1b Adjustments to 30 June 2005 Balance Sheet The PTA has transferred $754k in software from property, plant and equipment to intangible assets. This represents the opening balance sheet adjustment of $1,374k less $621k depreciation for the year. Note 45.2 Receivable (AASB101) AASB 101 requires receivables be disaggregated into amounts receivable from trade customers, prepayments and other amounts. 45.2a Adjustments to 30 June 2005 Balance Sheet Prepayments and cash advances on New MetroRail project have been reclassified from ‘Other assets’ to ‘Receivables’ ($8,530k). Note 45.3 Employee benefits (AASB 119 and AASB 101) Employment on-costs are not included in employee benefits under AGAAP or AIFRS. However, under AGAAP employee benefits and on-costs are disclosed together on the face of the Income Statement as employee costs. Under AIFRS employee benefits will be the equivalent item disclosed on the face. On-costs are transferred to other expenses. 45.3a Adjustments to the Income Statement for the period ended 30 June 2005 Employment on-costs expense has been reclassified from employee benefits expense to other expense ($9,721k). 45.3b Adjustments to the Cash Flow Statement for the period ended 30 June 2005 Employment on-costs payments have been reclassified from employee benefit payments to other payments ($9,721k). Note 45.4 Net gain on disposal of non-current assets (AASB 116) Under AGAAP the disposal of non-current assets is disclosed on the gross basis. That is, the proceeds of disposal are revenue and the carrying amounts of assets disposed of are expense. The disposal of non-current assets is disclosed on the net basis (gains or losses) under AIFRS. Adjustments to the Income Statement for the period ended 30 June 2005 The carrying amounts of assets disposed of were previously recognised as expense. This has been derecognised ($3,111k). The proceeds of disposal of non-current assets were previously recognised as income. This has been derecognised ($25,888k). A gain on the disposal of non-current assets of $22,777k has been recognised as income.
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006 115 contact details
Principal Office
Street Address: Public Transport Authority of Western Australia Public Transport Centre West Parade East Perth WA 6004
Postal Addrress PO Box 8125 Perth Business Centre Perth WA 6849
Australian Business Number: 44 143 660 866
Telephone
General administration enquiries (08) 9326 2000 (Office hours only)
Transperth Infoline 13 62 13
Transwa Booking Centre 1300 6622 05 (Prospector, Australind, AvonLink and Country Road Coach Services)
Publications available to the public
For copies of publications available to the general public, please contact: David Leith, Manager, Communications and Corporate Relations Ph: 08 9326 2764 Fax: 08 9326 2755
Freedom of Information Act Information Statement inquiries should be directed to: Bernard Martinovich, Manager, Corporate Issues and Compliance Ph: 08 9326 2368 Fax: 08 9326 2936
Internet address: www.pta.wa.gov.au
116 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006
Chief Executive Officer’s Summary
PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006